USD/CAD toying with session highs near 1.3500

After bottoming out in the vicinity of 1.3420, USD/CAD has staged a recovery to the current area of daily tops near 1.3500 the figure.

USD/CAD focus on US, CAD data

The rally in the greenback remains on the rise today, reverting the initial negative mood and now pushing spot once again to test the 1.3500 neighbourhood. The US Dollar Index is extending its march north to test the 100.60 area, levels last seen in December 2015.

Other than the strong performance of the buck, CAD is suffering a moderate correction in crude oil prices, which has dragged the barrel of West Texas Intermediate back to the proximity of the $45.00 mark, shedding around $1 from yesterday’s tops above $46.00.

Data wise in the US docket, Industrial/Manufacturing Production is due followed by the NAHB index, Capacity Utilization and the weekly report on crude inventories by the DoE. In addition, Philly Fed P.Harker (2017 voter, hawkish) is also due to speak.

In Canada, Manufacturing Shipments is only due along with the speech by BoC Deputy Governor T.Lane.

USD/CAD significant levels

As of writing the pair is up 0.26% at 1.3482 and a break above 1.3575 (50% Fibo of the 2016 drop) would expose 1.3590 (high Nov.14) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, the immediate support lines up at 1.3395 (20-day sma) followed by 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3260 (low Nov.9).

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