USD/CAD testing the 200D SMA near 1.3140 ahead of data

USD/CAD is looking to sustain further the recent breakout of the 1.3100 handle, always backed by a persistent buying interest around the buck.

USD/CAD attention to data

Spot is adding to yesterday’s gains, extending at the same time the bounce off recent lows in sub-1.3000 levels following a decent pick up in the demand for the US Dollar.

US-CA yield spreads are alternating with crude oil dynamics as drivers for the pair’s price action as of late, with the spread in the 2-year benchmark retreating to 41 pts, while the barrel of West Texas Intermediate dropping to the vicinity of the $53.00 mark.

CAD remains supported by speculative positioning at the same time, with net longs climbing to the highest level since  late September in the week to January 31, according to the latest CFTC report.

Later in the NA session, US/Canada Trade Balance figures are due along with Ivey’s PMI, Building Permits and JOLTs Job Openings.

USD/CAD significant levels

As of writing the pair is gaining 0.41% at 1.3135 facing the next hurdle at 1.3171 (high Jan.30) followed by 1.3279 (55-day sma) and finally 1.3286 (100-day sma). On the other hand, a breach of 1.3004 (low Feb.6) would expose 1.2977 (low Feb.2) and then 1.2967 (low Jan.31).