USD/CAD plummets below 1.29 on GDP data

USD/CAD plummets below 1.29 on GDP data

31 March 2016, 14:41
Vasilii Apostolidi

The Canadian dollar is gathering further traction vs. its American peer on Thursday, quickly dragging USD/CADto fresh lows in sub-1.2900 levels.

USD/CAD weaker post-GDP result

Spot faces increasing selling pressure after Canadian GDP figures have come in on the strong side today, showing the economy has expanded 0.6% on a monthly basis during January, beating estimates at 0.3% and up from December’s 0.2% advance.

Back to the US docket, Initial Claims have increased to 276K during last week, taking the 4-Week Average to 263K vs. 259K previous.

Next on tap will be the Chicago PMI, followed by speeches by Fed’s Evans, Dudley and Williams.

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USD/CAD significant levels 

As of writing the pair is retreating 0.37% at 1.2917 and a breakdown of 1.2887 (2016 low Mar.31) would open the door to 1.2827 (monthly low Oct.15 2015) and finally 1.2124 (monthly low Jun.16). On the other hand, the next up barrier aligns at 1.3221 (20-day sma) would open the door to 1.3370 (200-day sma) and then 1.3596 (38.2% Fibo of 1.4692-1.2919).

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