USD/CAD sinks below 1.2500 on CA, US data

The Canadian Dollar is extending its gains vs. its American neighbour on Wednesday, now sending USD/CAD to the 1.2500 neighbourhood, closer to session lows.

USD/CAD weaker on data

CAD met a fresh wave of buying interest after Canadian manufacturing sales jumped 1.6% MoM during August, crushing estimates for a 0.1% drop and shaprly reverting July’s 0.2% contraction.

On the US side, both building permits and housing starts missed consensus during last month, contracting at a monthly 4.5% and 4.7%, respectively.

In the broader picture, the pair is losing ground for the first time after two consecutive advances, with CAD regaining some attention after the NAFTA talks are set to continue in the next months.

In addition, the rally in crude oil prices has pushed the barrel of West Texas Intermediate back above the $52.00 mark, also lending support to CAD and thus collaborating with the downside.

USD/CAD significant levels

As of writing the pair is losing 0.19% at 1.2499 facing the next down barrier at 1.2488 (low Oct.18) seconded by 1.2431 (low Oct.12) and then 1.2253 (low Sep.22). On the other hand, a surpass of 1.2558 (high Oct.16) would aim for 1.2599 (high Oct.6) and finally 1.2664 (high Aug.31).