USD/CAD retreats from above 1.3500

USD/CAD lost momentum and turned lower, trimming intraday gains, in line with a broad USD pullback on the back of weaker-than-expected US consumer income/spending data.

USD/CAD reached a 2-week high of 1.3519 during the NEw York session, underpinned by solid US GDP figures and weak Canadian CPI. However, the pair retraced some gains and dropped back below the psychological level. At time of writing, USD/CAD is trading at 1.3468, still 0.44% up on the day.

The USD came under mild pressure across the board after data showed personal spending rose 0.2% in November versus 0.3% expected while incomes were essentially unchanged in the same period, against 0.3% expected. Meanwhile, the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, was unchanged in November, after a 0.3% increase in October and rose 1.4% YoY.  

USD/CAD levels to consider

As for technical levels, next resistances are seen at 1.3536 (Nov 28 high), 1.3564 (Nov 18 high) and 1.3600 (psychological level). On the other hand, supports could be found at 1.3408 (Dec 22 low), 1.3351 (50-day SMA) and 1.3320 (20-day SMA).