- Canadian dollar down against the US dollar, still outperforming among commodity currencies.
- USD / CAD finds support above 1.2715, maintaining a bullish tone.
The USD / CAD it rose to 1.2746, reaching the highest level in three days, early in the US session, amid a stronger US dollar following the release of US economic data. Then the pair pulled back to find support around 1.2720.
US and Canadian data exceed expectations
Retail sales rose almost 6% in January, beating expectations (+ 0.8%) in the US In another report, the Producer Price Index showed a higher than expected increase of 1.3% in January. The dollar gained momentum after the number and rose across the board, hitting new highs.
In Canada, the Consumer Price Index also showed higher than expected figures for January (0.6% versus 0.4%). Those favored the loonie and kept gains in USD / CAD limited. Despite falling against the US dollar, the Canadian dollar (CAD) has risen against the AUD and NZD.
Short-term levels
From a technical perspective, the bias in USD / CAD continues to point to the upside. The immediate barrier is located at 1.2750. A consolidation above would add more strength to the dollar. The next resistance is at 1.2765.
A drop below 1.2715 would ease the bullish pressure. The next levels of support could be seen at 1.2685, followed by 1.2660.
Technical levels
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