USD/CAD corrects further on US, CAD data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is clawing back some gains vs. its neighbor, sending USD/CAD to re-test the 1.4630 area.

    USD/CAD eases a tad after data

    The pair moved lower towards the 1.4600 neighbourhood after US consumer prices rose less than expected 0.7% on a year to December; CPI exclusing Food and Energy costs have come in at 2.1% YoY, matching previous estimates. Still in the US docket, further data saw both Housing Starts and Building Permits surpassing expectations during the last month.

    Moving on to the Canadian calendar, Manufacturing Shipments came in on the strong side, expanding 1.0% from October to November. Ahead in the session, the BoC interest rate decision is due, with consensus still split over the potential outcome.

    USD/CAD significant levels

    As of writing the pair is gaining 0.45% at 1.4624 facing the initial hurdle at 1.4672 (high Apr.24 2003) and then 1.4946 (high Apr.7 2003). On the other hand, a break below 1.4177 (20-day sma) would aim for 1.3793 (low Dec.24) and finally 1.3790 (3-month uptrend).
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