USD/CAD spikes to 1.34 following key data releases from Canada and US

• Retail sales in Canada rose 0.8% in February
• The Census Bureau reports a 1.6% growth in U.S. retail trade.
• US Dollar Index jumps to 2-week highs above 97.40.

With the initial market reaction to upbeat macroeconomic data releases from both Canada and the United States, the USD/CAD pair touched a fresh 2-day high at 1.34 before retreating slightly. As of writing, the pair was up 0.34% on the day at 1.3384.

Statistics Canada today reported that retail sales in February increased by 0.8% on a monthly basis following January's 0.4% decline. Other data from Canada today showed that, according to the ADP, employment in March increased by 13.2K. 

However, with the greenback taking advantage of the upbeat data from the U.S., the pair didn't have a difficult time staying in the positive territory.

Retail sales in the U.S. rose by an impressive 1.6% in March to beat analysts' estimate for a growth of 0.7%. Additionally, initial jobless claims decreased by 5K to 192, its lowest level since 1969. Boosted by the data, the US Dollar Index, which earlier in the day advanced to 97.30 area amid risk-off flows, jumped to its highest level in two weeks at 97.42. Later in the session, the Markit's Manufacturing and Services PMI data will be the next driver of the greenback's valuation ahead of the Easter break.

Technical levels

With a decisive break above 1.3400 (daily high/Apr. 16 high), the pair could target 1.3450 (Mar. 28 high) and 1.3500 (psychological level). On the downside, support could be seen at 1.3330 (50-DMA), 1.3275 (Apr. 17 low) and 1.3230 (200-DMA).