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USD/CAD recovers 1.3050 on data

FXStreet (Edinburgh) - The Canadian dollar is now surrendering some of its earlier gains vs. its American neighbour, pushing USD/CAD back to the mid-1.3000s.

USD/CAD a tad higher post-data

The pair extending its rebound from the 1.3000 key support after Canadian inflation figures failed to surprise markets during August, matching previous expectations. In fact, headline consumer prices rose at an annual pace of 1.3%, matching July’s print as well, while BoC’s core reading showed prices increasing 2.1% on a yearly basis, in line with forecasts and previous print.

The pair remains on entrenched on the negative territory following the increasing weakness around the greenback after yesterday’s Fed decision to delay its rate hike for later in the year, with markets currently pricing in a 60% chances of a rate hike in December and 90% in January 2016.

USD/CAD levels to consider

The pair is now losing 1.15% at 1.3030 and a breach of 1.3010 (low Sep.18) would open the door to 1.3000 (psychological level) and then 1.2952 (low Aug.12). On the other hand, the initial up barrier aligns at 1.3186 (high Sep.18) followed by 1.3261 (high Sep.16) and finally 1.3290 (high Sep.10).

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