Search ForexCrunch
  • Upbeat Canadian GDP figures exerted some fresh downward pressure.
  • Mostly in line US data does little to provide any meaningful impetus.
  • Weaker Crude Oil prices helped limit any deeper losses, at least for now.

The USD/CAD pair extended its intraday pullback from levels just above the 1.3300 handle and dropped to fresh session lows post-Canadian GDP/US macro data.
The pair failed to capitalize on its early uptick back closer to weekly tops and failed to attract any buyers despite a weaker tone surrounding Crude Oil prices, which tend to undermine demand for the commodity-linked currency – Loonie.

Canadian GDP beats market estimates

The selling pressure picked up the pace in the last hour following the release of the upbeat Canadian GDP report, showing that the economy expanded by 0.2% in June and the annualized growth rate stood at 3.7% during the second quarter of 2019.
The readings were better-than consensus estimates, which coupled with the fact that the economic growth rose sharply from the previous quarter’s reading of 0.4% provided a strong boost to the Canadian Dollar and exerted pressure on the major.
On the other hand, upbeat US personal spending data and mostly in line core PCE Price Index and did little to assist the US Dollar to gain any meaningful traction, albeit turned out to be the only factor that helped limit any deeper losses.
With Friday’s key data out of the way, it will now be interesting to see if the pair is able to attract any fresh buying at lower levels or the rejection slide from the very important 200-day SMA marks the beginning of a fresh leg of a downfall.

Technical levels to watch