USD/CAD pushes higher to 1.3050, new highs
- The USD rally now pushes the pair beyond the 1.30 handle.
- Spot trades in levels last seen in mid-March near 1.3050.
- Softer crude oil prices also weighs on the Canadian Dollar.
The greenback keeps the positive note vs. its Canadian peer during the first half of the week and is now lifting USD/CAD to fresh tops further north of the psychological barrier at 1.30 the figure.
USD/CAD looks to US data, BoC
The pair keeps the upside momentum well and sound so far on Tuesday, advancing for the sixth session in a row to levels in the proximity of 1.3050, or fresh 2-month peaks.
In addition, the softer tone in crude oil prices are also collaborating with the offered bias surrounding the Canadian currency. The barrel of West Texas Intermediate remain on the defensive so far this week, trading in sub-$67.00 levels, around $6 lower than recent tops near the $73.00 mark.
In the meantime, CAD remains vigilant on the prospects of further tightening by the BoC in the next months, while US-CA yield spreads (particularly in the shorter-end of the curve) remain a key driver for the pair.
Looking ahead, CAD will be under scrutiny in light of the BoC meeting (Wednesday) and GDP figures (Thursday), while today’s publication of the CB’s Conference Confidence and the S&P/Case-Shiller index are next on tap in the US docket, preceding the ADP report (tomorrow), April’s PCE figures (Thursday) and the ISM Manufacturing and Payrolls (Friday).
USD/CAD significant levels
As of writing the index is up 0.30% at 1.3042 facing the next hurdle at 1.3126 (2018 high Mar.19) followed by 1.3132 (61.8% Fibo of the 2017 drop) and then 1.3222 (monthly low Apr.13 2017). On the flip side, a breakdown of 1.2999 (low May 8) would open the door 1.2927 (50% Fibo of the 2017 drop) and finally 1.2880 (10-day sma).