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USD/CAD back to 1.0900

FXStreet (Edinburgh) - The USD/CAD quickly faded the spike to fresh highs just below 1.0920 in the wake of the US data releases.

USD/CAD tests fresh highs on US data

Spot posted fresh 3-day highs after the US consumer prices advanced 2.0% in a year to July, in line with market forecasts. Core prices rose 1.9% over the last twelve months, in line with estimates and previous print. Further data showed both Building Permits and Housing Starts surpassing expectations at 1.052M and 1.093 M, respectively. In the view of Shaun Osborne, Chief FX Strategist at Scotiabank, “Having found firm support late last week around the 200-day MA, USDCAD really needs to make a little clearer headway through the low 1.09 area if it is to stabilize—and improve further – from a technical point of view… We look for support at 1.0890/95 today to provide a base for funds to retest 1.0950 in the days ahead”.

USD/CAD levels to watch

At the moment the pair is advancing 0.17% at 1.0906 facing the next hurdle at 1.0919 (high Aug.15) followed by 1.0921 (high Aug.14) and finally 1.0941 (high Aug.13). On the flip side, a breach of 1.0868 (200-d MA) would open the door to 1.0861 (low Aug.15) and then 1.0808 (Kijun).

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