“¢ The USD recovers a part of the early lost ground on stronger than expected US Q4 GDP print.
“¢ Softer Canadian data offset a modest uptick in crude oil prices and remained supportive.
The USD/CAD pair spiked to fresh session tops, albeit seemed struggling to build on the momentum further beyond the 1.3200 handle.
The pair caught some fresh bids during the early North-American session after an unexpectedly strong than expected US GDP print, coming in to show that the economic growth in the last quarter of 2018 stood at 2.6% annualized pace.
The data triggered a sharp upsurge in the US Treasury bond yields, with the yield on the benchmark 10-year government bond rising to two-week tops, around 2.706% and helping the US Dollar to recover a part of its early lost ground.
Adding to this, disappointing Canadian data – a large than expected jump in trade deficit figures and weaker RMPI, exerted some additional pressure on the domestic currency and remained supportive of the pair’s goodish up-move.
Meanwhile, a mildly positive tone around crude oil prices, which tend to underpin the commodity-linked currency – Loonie, did little to dent the bullish sentiment, albeit kept a lid on any strong follow-through momentum.
Today US economic docket also features the release of Chicago PMI, which is unlikely to act as a game changer but might still be looked upon to grab some short-term trading opportunities.
Technical levels to watch
A follow-through buying has the potential to continue lifting the pair further towards 1.3230 intermediate resistance en-route 100-day SMA hurdle near mid-1.3200s. On the flip side, the 1.3160-55 region now seems to protect the immediate downside, which if broken might turn the pair vulnerable to accelerate the slide towards the 1.3100 handle.
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