- USD/CAD pair buying picked up the pace during the early NA session.
- Canadian retail sales for October missed expectations by a big margin.
- Weaker oil prices further weighed on the loonie and remained supportive.
The USD/CAD pair built on its steady intraday ascent and surged back closer to weekly tops, around the 1.3180 region on dismal Canadian data.
The buying interest surrounding the pair picked up some additional pace in the last hour following the disappointing release of Canadian macro data, showing that monthly retail sales plunged by 1.2% in October as against consensus estimates pointing to a 0.5% growth.
Adding to the disappointing headline print, core retail sales (excluding automobiles) also fell short of market expectations and came in to show a decline of 0.5%. Against the backdrop of a negative tone surrounding oil prices, weaker domestic data exerted some pressure on the commodity-linked currency – loonie.
On the other hand, the US dollar held on to its positive tone on the back of a goodish intraday pickup in the US Treasury bond yields and the final GDP print, which confirmed that economic growth during the third quarter of 2019 matched the preliminary estimates and stood at 2.1% annualized pace.
The positive momentum too along some short-term trading stops being placed near the 1.3150 horizontal resistance. Hence, some follow-through strength, possibly towards reclaiming the 1.3200 round-figure mark, now looks a distinct possibility.
Technical levels to watch
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