USD/CAD backs away from 1.4000

By FXStreet FXStreet (Córdoba) – USD/CAD backed away from the 1.4000 area after posting fresh 11-year highs at the beginning of the NEw York session, as the loonie weakened on the back of soft inflation numbers.

However, the Canadian dollar recovered ground and helped by the rise in oil prices it dragged USD/CAD to negative ground for the day, sliding to 1.3853 in recent dealings. At time of writing, the pair is trading at 1.3895, 0.29% below its opening price.

On the data front, Canadian CPI fell 0.1% in November, while core inflation declined 0.3%, missing expectations of +0.1% and 0.0% respectively. From a year earlier, headline inflation rose 1.4% versus 1.5% of consensus, while core CPI grew 2.0% below the 2.3% expected.

USD/CAD levels to watch

In terms of technical levels, on the downside short-term supports are seen at 1.3777 (Dec 17 low), 1.3716 (10-day SMA) and 1.3672 (Dec 15 low). On the upside, next resistances could be faced at 1.4003 (May 18 2004 high), 1.4086 (Aug 28 2003 high) and then 1.4100 (psychological level).
For more information, read our latest forex news. …read more

Source:: FX Street