USD/CAD keeps lows near 1.3150 post-US data

USD/CAD remains on the defensive in the wake of US data releases today, currently hovering over the mid-1.3100s.

USD/CAD now looks to Yellen

The pair kept the daily bearish tone today after US headline Retail Sales have matched expectations during November, rising at a monthly 0.6%. Sales stripping the Autos sector surpassed estimates, up 0.5% MoM, while Retail Sales Control group rose below estimates 0.1%.

Further US data saw Producer Prices rising at a monthly 0.3% and 0.7% over the last twelve months, beating initial forecasts.

Later in the NA session, September’s US Retail Sales and Producer Prices are due followed by the flash measure of the Consumer Sentiment tracked by the Reuters/Michigan Index.

Ahead in the NA session, the flash measure of the Consumer Sentiment tracked by the Reuters/Michigan Index is expected to improve to 91.9 during October. In addition Boston Fed E.Rosengren (voter, dovish) and Chair J.Yellen are due to speak at the Boston Fed Conference.

In the meantime, prices for the barrel of WTI remains on the upside, adding to CAD strength.

USD/CAD significant levels

As of writing the pair is retreating 0.16% at 1.3171 and a breach of 1.3179 (20-day sma) would open the door to 1.3135 (low Oct.10) and then 1.3074 (55-day sma). On the other hand, the next hurdle aligns at 1.3314 (high Oct.7) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).