- Canadian headline retail sales decline by 0.1%; core sales rise more than expected.
- Sliding US bond yields weighed on the USD and added to the intraday selling bias.
- Bulls seemed rather unimpressed by weaker oil, which underpins the loonie.
The USD/CAD pair finally broke down of its daily consolidative trading range and tumbled to fresh session lows, around mid-1.3200s post-Canadian macro data.
The pair extended previous session pullback from multi-week tops and witnessed some follow-through selling for the second consecutive session on Friday following the release of Canadian monthly retail sales figures.
Weighed down by upbeat Canadian data
Data released this Friday showed that headline sales recorded a modest 0.1% decline for the third consecutive month in September, while core sale (excluding automobiles) posted a stronger-than-expected growth of 0.2%.
Against the backdrop of a subdued US dollar demand, this time weighed down by a fresh leg of a downfall in the US Treasury bond yields, further collaborated to the pair’s slide back below the very important 200-day SMA.
Meanwhile, the downfall seemed rather unaffected by weaker oil prices, which tend to undermine demand for the commodity-linked currency loonie, albeit might turn out to be the only factor that might lend some support.
With Friday’s key Canadian data out of the way, market participants now look forward to the US economic docket, featuring the release of flash Manufacturing PMI and Michigan Consumer Sentiment Index, for a fresh impetus.
Technical levels to watch
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