USD/CAD upside falters near 1.3370 ahead of US data

The upside momentum of the greenback seems to have run out of legs near 1.3370 vs. its Canadian neighbour, with USD/CAD now receding to the 1.3360/50 band.

USD/CAD attention to data

The pair has managed to revert the recent downside, looking to extend the rebound from last week’s lows near 1.3220, where sits the critical 200-day sma.

CAD is also deriving weakness following the soft performance from yields in the Canadian money markets, particularly in the shorter end of the curve, which continue to widen the spread vs. its US peer.

In addition, crude oil prices are dropping further today, dragging the barrel of West Texas Intermediate to the $52.20 region, down from last week’s tops near $53.70, all adding to CAD selling.

Data wise today, Canadian Foreign Transactions are due while Housing Starts, Building Permits, Industrial Production and Capacity Utilization are expected in the US docket.

USD/CAD significant levels

As of writing the pair is gaining 0.19% at 1.3344 facing the immediate resistance at 1.3369 (high Apr.18) followed by 1.3402 (23.6% Fibo of January-march up move) and then 1.3457 (high Apr.4). On the other hand, a breakdown of 1.3278 (55-day sma) would open the door to 1.3226 (200-day sma) and finally 1.3220 (low Apr.13).