USD/CAD remains limited by 1.3250, Loonie not impressed by Canadian data


  • Canadian GDP expanded 0.3% in May.
  • US data shows core consumer inflation slowing down.
  • USD/CAD moves sideways on Friday, remaining near the levels it had a week ago.

The USD/CAD dropped to the 1.3200 area following US and Canadian economic data but then rebounded, approaching the key resistance area at 1.3250. The pair hit weekly highs at 1.3248 but failed to break higher as it continues to move sideways, and is about to end the week unchanged.

Sideways despite data 

Data released on Friday showed that the Canadian GDP expanded 0.3% in May, in line with consensus. The Loonie rose after the data but then pulled back, with USD/CAD moving sideways. “Several temporary factors distorted May's GDP data. While the end of the federal employees' strike boosted the economy, forest fires resulted in a contraction of the energy sector. Excluding these two factors, the Canadian economy grew 0.4%, better than the headline figure (0.3%). But this rebound may be short-lived,” explained analysts at the National Bank of Canada.

Regarding US data, the annual Core Personal Consumption Expenditure Index fell from 4.6% to 4.1% in June, weighing on the US Dollar. Personal Income rose 0.3%, below the 0.5% of market consensus, and Personal Spending rose by 0.5% above the expected 0.4%. A different report showed that the Employment Cost Index during the second quarter rose 1%, less than the 1.1% of market forecast.

The US Dollar pulled back after the data that pointed to softer inflation. The US Dollar Index is falling 0.20% on Friday, erasing some of Thursday's gains. On a weekly basis, the DXY is up, headed toward the second consecutive weekly gain. Next week, the US and Canada will release employment reports.

USD/CAD still under 1.3250

The USD/CAD is moving with a slight bullish bias but remains capped by the 1.3250 area. A break higher could lead to an acceleration, with the next resistance seen at 1.3290. The key support stands at 1.3150; before that level, an interim support emerges at 1.3190.

Technical levels 

USD/CAD

Overview
Today last price 1.3227
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3224
 
Trends
Daily SMA20 1.3218
Daily SMA50 1.331
Daily SMA100 1.3429
Daily SMA200 1.3465
 
Levels
Previous Daily High 1.3243
Previous Daily Low 1.3158
Previous Weekly High 1.3244
Previous Weekly Low 1.312
Previous Monthly High 1.3585
Previous Monthly Low 1.3117
Daily Fibonacci 38.2% 1.3211
Daily Fibonacci 61.8% 1.3191
Daily Pivot Point S1 1.3173
Daily Pivot Point S2 1.3123
Daily Pivot Point S3 1.3088
Daily Pivot Point R1 1.3259
Daily Pivot Point R2 1.3294
Daily Pivot Point R3 1.3344

 

 

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