USD/CAD bounces off 1.2800 on US data

The greenback remains sharply lower vs. its Canadian neighbor in the first half of the week, with USD/CAD now finding some support in the 1.2800 area.

USD/CAD lower on USD, oil

Another day, another (big) drop in the pair, with CAD appreciating to the 1.2800 handle vs. the buck on the back of a persistent recovery of crude oil prices, mixed US results and a generalized offered bias in USD.

Prices for the barrel of West Texas Intermediate are hovering over the $46.00 mark today, posting gains for the fourth session in a row and extending the monthly rally from the low-$39.00s.

On the data front, US headline consumer prices have come in flat inter-month in July and rose 0.8% over the last twelve months. Core prices rose 2.2% YoY and 0.1% MoM, both prints coming in below estimates.

Further US data saw mixed results from the US housing sector, while Industrial/Manufacturing Production and Capacity Utilization have all expanded more than expected during last month.

USD/CAD significant levels

As of writing the pair is retreating 0.47% at 1.2862 and a break below 1.2799 (low Aug.16) would open the door to 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8). On the upside, the initial hurdle aligns at 1.2978 (55-day sma) followed by 1.3078 (20-day sma) and then 1.3202 (high Aug.5).