USD/CAD keeps the red, refreshes session low post-Canadian CPI

• Canadian inflation figures come bang in line with consensus estimates.
• Bulls seemed rather unimpressed by the prevalent USD buying interest.
• Even weaker crude oil prices failed to provide any meaningful impetus.

The USD/CAD pair maintained its mildly weaker tone and dropped to fresh session lows, around the 1.3130 region post-Canadian inflation figures.

Data released this Wednesday showed that the headline Canadian CPI edged lower by 0.1% in November as compared to a 0.3% increase recorded in the previous month. On the other hand, the yearly rate rose to 2.2%, from 1.9% prior, while the BoC's core CPI held steady at 1.9%.

The readings were mostly in line with consensus estimates, though provided a modest lift to the Canadian dollar. Meanwhile, investors seemed to have shrugged off a weaker tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked currency – loonie.

Even the broad-based US dollar strength also did little to impress bullish traders or extend any support to the major. Hence, it will be prudent to wait for the emergence of some strong buying interest before positioning for any meaningful near-term recovery.

Technical levels to watch