USD/CAD clings to gains below 1.3000

The Canadian dollar is now reclaiming some ground vs. its American neighbor, dragging USD/CAD to the 1.2970 area.

USD/CAD focus on oil, data

After briefly surpassing the psychological handle at 1.3000 on Monday, spot has now receded to the 1.2970/65 band albeit still keeping the positive territory. The rally in the greenback remains unabated so far, while softer crude oil prices have removed some tailwinds from CAD during the Asian trading hours.

Data wise in the US docket, NFIB’s Business Optimism index is due later followed by the weekly report on US stockpiles by the API and the speech by New York Fed’s W.Dudley.

USD/CAD significant levels 

As of writing the pair is up 0.03% at 1.2967 and a breakout of 1.3015 (high May 9) would aim for 1.3023 (55-day sma) and then 1.3219 (high Apr.5). On the flip side, the next support aligns at 1.2745 (20-day sma) followed by 1.2461 (2016 low May 3) and finally 1.2124 (monthly low Jun.24 2015).