- The greenback is treading water in the mid-1.2900s vs. the Canadian Dollar.
- Spot extends the bounce off lows in the 1.2830 region.
- US Non-farm Payrolls, ISM manufacturing next of relevance.
The greenback alternates gains with losses vs. its Canadian neighbour on Friday, prompting USD/CAD to attempt a consolidative pattern in the mid-1.2900s ahead of key releases.
USD/CAD now looks to US calendar
Spot is looking for direction following yesterday’s strong rebound from weekly lows in the 1.2830 area, level coincident with the 55-day sma.
CAD continues to suffer the weakness surrounding crude oil prices, as the barrel of West Texas Intermediate is prolonging the recent breakdown of the key $67.00 mark.
In addition, pessimism around the NAFTA negotiations and the recently (re)imposed tariffs on US imports of steel and aluminium have been also weighing down on the Canadian Dollar.
Later in the session, US Non-farm Payrolls (189K exp.) and the ISM Manufacturing (58.2 exp.) are due, whereas the RBC manufacturing PMI will be publish in the Canadian docket.
USD/CAD significant levels
As of writing the index is down 0.02% at 1.2954 and a breakdown of 1.2828 (55-day sma) would open the door to 1.2816 (low May 31) and finally 1.2727 (3low May 11). On the other hand, the next hurdle emerges at 1.2999 (high May 8) seconded by 1.3049 (high May 29) and finally 1.3126 (2018 high Mar.19).
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