USD/CAD drops further to 1.3240, API eyed

The greenback is now accelerating its decline vs. its Canadian peer, sending USD/CAD to test fresh lows in the 1.3240 region.

USD/CAD lower on USD-selling, focus on API

Spot is coming down to the 1.3040 area as the selling bias around the greenback is now gathering extra traction.

In addition, CAD is deriving further support from the recovery in crude oil prices, with the barrel of West Texas Intermediate approaching the $41.00 mark after bottoming out in sub-$40.00 levels on Monday.

Data wise, Canadian RBC’s PMI has come in at 51.9 during last month vs. June’s 51.8, while US inflation figures tracked by the PCE have matched prior surveys.

USD/CAD significant levels

As of writing the pair is losing 0.64% at 1.3041 and a breakdown of 1.2998 (low Jul.29) would open the door to 1.2983 (55-day sma) and finally 1.2858 (low Jul.14). on the other hand, the next up barrier lines up at 1.3253 (high Jul.27) followed by 1.3314 (200-day sma) and then 1.3575 (50% Fibo of the 2016 down move).