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USD/CAD drops to lows around 1.1150

FXStreet (Edinburgh) - The better risk sentiment continues to punish the greenback today, now dragging the USD/CAD to session lows around the mid-1.1100s.

USD/CAD boosted by data, risk

The favourable tone towards the CAD has been also accentuated after the PMI gauged by Ivey surprised investors to the upside, jumping to 58.6 for the month of September vs. August’s 50.9. Moving forward to tomorrow’s docket, Building Permits are only due in Canada whereas speeches by Kocherlakota, Dudley and Bernanke will grab all the attention in the US economy, preceding the Consumer Credit Change. “Overall, we remain bullish on the outlook for USDCAD; trend momentum indicators are bullish across a range of timeframes and that will limit counter-trend corrections near-term at least”, observed Shaun Osborne, Chief FX Strategy at TD Securities.

USD/CAD key levels

The pair is now retreating 0.78% at 1.1155 with the immediate support at 1.1279 (2014 high Mar.20) followed by 1.1300 (psychological level). On the flip side, a break below 1.1071 (low Oct.2) would expose 1.1056 (low Sep.25).

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