USD/CAD extends the advance above 1.3300

The greenback is now posting meagre gains vs. its Canadian neighbor, taking USD/CAD to test the area of daily tops in the 1.3310/15 band.

USD/CAD looks to data

After bottoming out near 1.3270 during overnight trade, the pair managed to not only regain the 1.3300 handle but also to advance further north of it to current session tops around 1.3315.

The lack of surprise at the FOMC meeting on Wednesday sparked a sharp sell-off in the buck, dragging spot to fresh 2-week lows well below the 1.3300 critical support.

As market participants continue to digest the recent rate hike and the Committee’s views, the US docket will be in the limelight later in the session with the release of Initial Claims, the Philly Fed index, JOLTs Job Openings, Housing Starts and Building Permits.

In Canada, Foreign Transactions for the month of January are only due.

USD/CAD significant levels

As of writing the pair is up 0.01% at 1.3306 and a break above 1.3325 (bottom of the 10-month up channel) would expose 1.3359 (61.8% Fibo of 1.3601-1.2967) and finally 1.3487 (high Mar.15). On the downside, the immediate support lines up at 1.3276 (low Mar.16) seconded by 1.3220 (55-day sma) and then 1.3178 (200-day sma).