USD/CAD clings to daily gains above 1.3370 after US data

• USD/CAD trades modestly higher above 1.3370 on Friday.
• US Dollar Index clings to gains near 94.50 ahead of Wall Street’s opening bell.
• WTI struggles to hold above $40 in early American session.

After spending the first half of the day fluctuating in a tight range near 1.3350, the USD/CAD pair turned north in the last hours and touched a fresh daily high of 1.3390. As of writing, the pair was up 0.12% on the day at 1.3377.

DXY looks to end the week on a strong footing

The data from the US showed on Friday that Durable Goods Orders in August rose by 0.4% to miss the market expectation for an increase of 1.5%. Durable Goods Orders ex Defense, however, came in at +0.7% for the same period and surpassed analysts’ estimate of +0.1%. 

The market reaction to this data was largely muted. The US Dollar Index (DXY), which closed modestly lower on Thursday, preserves its bullish momentum in the early American session and was last seen gaining 0.25% on the day at 94.55.

On the other hand, crude oil’s uninspiring performance is making it difficult for the commodity-related loonie to show resilience against the USD. Following a decisive rebound to $40.60 earlier in the day, the barrel of West Texas Intermediate (WTI) reversed its course and is currently down 0.67% on the day at $39.90.

There won’t be any other macroeconomic data releases in the remainder of the day. Meanwhile, the S&P 500 futures turned positive after falling as much as 1% on Friday, suggesting a positive start in Wall Street could keep the USD’s gains limited.

Technical levels to watch for