USD/CAD pushes higher beyond 1.2700, session tops

The Canadian Dollar remains on the defensive vs. its neighbour so far this week, now sending USD/CAD to test fresh daily tops in the 1.2700 neighbourhood.

USD/CAD bid on US data

The pair is advancing for the seventh session in a row so far today, testing the 1.2700 handle and extending the rebound from fresh cycle lows near 1.2410 seen in late July.

USD gained extra traction today after the IBD/TIPP economic optimism index and the NFIB business optimism index came in above expectations for the month of July. In addition, JOLTs Job Openings printed fresh record highs at 6.163 million in June.

CAD is also deriving weakness from the US and Canadian money markets, where yields in the shorter end of the curve keep favouring the buck for the time being. CA 2-year reference is back around 1.24% after climbing as high as the 1.35% levels in late July.

USD/CAD significant levels

As of writing the pair is gaining 0.17% at 1.2703 facing the next hurdle at 1.2738 (23.6% Fibo of the 2017 drop) seconded by 1.2940 (38.2% Fibo of the 2017 drop) and finally 1.3000 (psychological handle). On the flip side, a breach of 1.2607 (21-day sma) would aim for 1.2563 (10-day sma) and then 1.2412 (2017 low Jul.27).