USD/CAD drops to lows near 1.3380, US ISM on sight

The Canadian dollar is now trading on a firm fashion vs. its American neighbor, with USD/CAD dropping to the area of daily lows near 1.3380.

USD/CAD focus on US data

The pair is posting losses for the first time after two consecutive advances, although the week stays on its way to close well into the red territory.

Spot is nonetheless keeping the trade within the recent range, bottoming out in the mid-1.3300s on Wednesday following the rally in crude oil prices, while the upside was capped just above 1.3460.

CAD remains well underpinned by the recent performance of crude oil following the deal at the OPEC meeting yesterday, with the barrel of West Texas Intermediate now hovering over the critical $50 mark, up around 1%, or 5-week tops.

Data wise in Canada, RBC’s Manufacturing PMI is only due today, while the weekly report on the labour market, Markit’s Manufacturing PMI and the ISM Manufacturing should keep the attention around the buck. In addition, Cleveland Fed L.Mester (voter, hawkish) is also due to speak.

USD/CAD significant levels

As of writing the pair is retreating 0.37% at 1.3386 and a breach of 1.3353 (low Nov.30) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3260 (low Nov.9). On the other hand, the next hurdle aligns at 1.3450 (20-day sma) followed by 1.3542 (high Nov.28) and then 1.3566 (high Nov.18).