USD/CAD (current price: 102.05)
The price of oil turned lower once again on Friday, and precious metals also continued their correction with a bearish day, putting further pressure on the Loonie. Manufacturing Sales in Canada only rose by 0.1% in August and Foreign Securities Purchases were also well below the consensus estimate of 10.12 billion, with a reading of 5.23 billion. The negative releases coupled with the better than expected U.S. CPI pushed the pair close to its multi-month high near 1.32 on Friday, but the retraced some of its gains today in early trading.
Our assessment: The cross is trading right at the upper boundary of the long-term trading range, with strong support at 1.3015, and near the 1.2900 level. Above the key resistance, there are more important levels ahead at 1.3250, and at 1.3350.
