USD/CAD Eyes 1.2800 on US Data

USD/CAD Eyes 1.2800 on US Data

4 May 2016, 14:41
Roberto Jacobs

USD/CAD Eyes 1.2800 on US Data

The greenback has quickly recovered the smile following disappointing ADP figures, now sending USD/CAD to post fresh session tops beyond 1.2780.

USD/CAD bid on US data, ISM next

The pair keeps its bid sentiment after the US docket showed the trade deficit shrunk to $40.4 billion in March, bettering expectations and lower than the $47.0 billion seen in February.

Further data saw preliminary readings of the Non-farm Productivity and Unit Labor Costs coming in above forecasts for the first quarter.

Next on tap will be the key ISM Non-manufacturing, Markit’s Services PMI and Factory Orders.

On the Canadian side, March’s trade deficit rose more than expected to $3.41 billion, with both imports and exports deflating from previous prints.

USD/CAD significant levels

As of writing the pair is up 0.45% at 1.2782 and a break above 1.2988 (23.6% Fibo of 1.4692-1.2461) would open the door to 1.2992 (high Apr.18) and then 1.3094 (55-day sma). On the other hand, the next support aligns at 1.2461 (2016 low May 3) followed by 1.2400 (psychological level) and finally 1.2124 (monthly low Jun.24 2015).


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