USD/CAD challenges lows near 1.3280

The greenback is losing further momentum vs. its Canadian peer on Monday, dragging USD/CAD to fresh daily lows in the 1.3280 region.

USD/CAD weaker post-data

Fresh USD-sellers seem to have stepped in after the US NY Empire State index disappointed market expectations for the month of April, coming in at 5.20 vs. 15.00 initially forecasted and down from March’s 16.40.

Spot dropped to daily lows near 1.3280 in the wake of the release although further downside appears unlikely following a rebound of yields in the US money markets, where the 2-year and 10-year references are extending the rebound from daily lows.

In addition, the barrel of West Texas Intermediate has reverted the initial negative momentum and has now regained the $53.00 mark and above, lending some support to CAD.

Further US data coming in later includes the NAHB index and TIC Flows.

USD/CAD significant levels

As of writing the pair is down 0.30% at 1.3286 facing the immediate support at 1.3277 (low Apr.17) followed by 1.3275 (low Mar.30) and finally 1.3262 (low Mar.21). On the upside, a break above 1.3314 (high Apr.17) would aim for 1.3341 (high Apr.12) and then 1.3352 (20-day sma).