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  • The greenback continues to outperform its rivals.
  • USD/CAD touches 2-week highs at 1.3080 on Thursday.
  • Markets await FOMC Chairman Powell and BoC Governor Poloz speeches.

The USD/CAD pair advanced to its highest level in since September 11 at 1.3080 during the early trading hours of the NA session but struggled to push higher. As of writing, the pair was trading at 1.3030, still up 0.08% on the day.

Today’s data from the United States gave an additional boost to the buck and lifted the US Dollar Index closer to the critical 95 mark. The U.S. Bureau of Economic Analysis announced that the real-GDP growth for the second quarter matched the previous estimate of 4.2% and came in line with expectations. Moreover, durable goods orders, which declined 1.2% (revised from 1.7) in July, rose 4.5% on a monthly basis in August to beat the experts’ estimate of 2%.

Ahead of the FOMC Chairman Jerome Powell’s speech later in the session, the US Dollar Index was up 0.6% on the day at 94.85. The Bank of Canada governor Stephen Poloz will also be delivering a speech at 21:45 GMT.

On Friday, investors will be paying close attention to the PCE price index from the U.S. and monthly GDP growth data from Canada. Previewing tomorrows GDP report, “a possible downside miss in growth should be taken in context with our headwinds that have surfaced for the loonie. Mostly, we think that market pricing against the Fed is priced to perfection with a modest spread between the terminal rates of the US and Canada. A look at 2y, 5y and 10y spreads against the US argue that USDCAD should be trading around 1.31,” TD Securities analysts argued.

Technical levels to consider

The pair could face the first support at  1.3000 psychological level) ahead of 1.2945 (200-DMA) and 1.2885 (Sep. 21 high). On the upside, resistances align at 1.3080 (daily high/100-DMA), 1.3170 (Aug. 16 high) and 1.3225 (Sep. 6 high).