- Loonie cheers the oil-price recovery amid broad US dollar weakness.
- Looks to Canada’s CPI and retail sales report for fresh trading impetus.
Having consolidated briefly around the midpoint of the 1.32 handle in early trades, the USD/CAD pair broke to the downside post-European open, now attempting a tepid recovery near 1.3250 region.
USD/CAD: Focus on Canada’s CPI and retail sales
The spot extended its retreat from near 1.3300 levels into the European session, as the renewed selling interest around the US dollar gathered pace, with markets still weighing in the disagreement by the US President Trump on the Fed’s Chair Powell’s rate hike stance.
The renewed weakness in the major can be attributed to a pick-up in demand for the resource-linked Loonie, as oil prices attempt gains ahead of the US Bakers Hughes rigs count data.
In the meantime, the pair eagerly awaits the Canadian CPI and retail sales data for fresh hints on the Canadian economic outlook, which could have a significant impact on the CAD pair.
USD/CAD Technical Levels
FXStreet’s Analyst Yohay Elam notes, “1.3295 capped the pair on July 19th and is an immediate line of resistance. 1.3350 was a high point in late June and also in 2017. The 2018 peak of 1.3380 is next. Further above, the round number of 1.3500 is of importance. 1.3220 limited the pair’s advance in early July. 1.3105 was a low point around the same time. Close by, 1.300 worked as support early in July. Even lower, 1.2950 was a stepping stone on the way up, back in mid-June.”
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