USD/CAD tests 1.3240 post-US CPI

The greenback remains on the firm footing vs. its Canadian neighbor today, lifting USD/CAD to the area of 1.3240, or fresh tops.

USD/CAD in 2-month peaks

The pair has quickly climbed to the 1.3240 area after US CPI has surprised markets to the upside during August, showing headline consumer prices rising at an annualized 1.1%. Core CPI – stripping costs of Food and Energy - has followed suit, up 2.3% vs. 2.2% initially forecasted.

In Canada, Manufacturing Shipments expanded 0.1% inter-month in July, coming in below estimates.

Adding to CAD weakness, the barrel of West Texas Intermediate is accelerating the downside, now testing the key support at the $43.00 mark.

USD/CAD significant levels

As of writing the pair is up 0.52% at 1.3224 facing the next resistance at 1.3253 (high Jul.27) ahead of 1.3263 (200-day sma) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the other hand, a breach of 1.3027 (base of the 4-month rising channel) would aim for 1.3019 (20-day sma) and then 1.2827 (low Sep.6).