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USD/CAD dips to test 1.0900

FXStreet (Edinburgh) - The USD/CAD is putting the 1.0900 key support to the test now, coming down from overnight peaks above 1.0940.

USD/CAD focus on the BoC

A context favouring the riskier assets is clearly playing against the greenback in the middle of the week, prompting spot to partially erase weekly gains. Data wise today, US Factory Orders for the month of July (11.0% exp.) would precede the key BoC monetary policy meeting. “Fundamentally, we are USD bullish and think the CAD may emerge from other side of the BoC statement a little softer. But technically, the short-term charts suggest that the intraday peak may be in for USDCAD here already and that funds may pressure support around 1.09 (200-day MA at 1.0901)”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.

USD/CAD levels to watch

The pair is now retreating 0.22% at 1.0902 and a break below 1.0857 (low Sep.1) would target 1.0810 (low Aug.29) en route to 1.0796 (low Jul.29). On the upside, the initial resistance aligns at 1.0956 (high Aug.27) ahead of 1.0998 (high Aug.26) and finally 1.1007 (high May 2).

United States Redbook index (YoY): 4.9% (August 29) vs 4%

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