The USDCAD is off intraday lows after data from Statistics Canada showed that Canada Retail Sales only grew up 0.4% for August, which was much less than the consensus and previous figures of 1.1%. Core Retail Sales (retail sales ex.autos) grew 0.5%, which was higher than the -0.4% figure released for August.
The Canadian Dollar experienced some weakness as a result of the news, but this weakness has been tapered as the Core Retail Sales showed a vast improvement from the poor data seen in July. As a result, the USDCAD that had touched off intraday lows at 1.30810, was now trading at 1.31153.
Crude oil prices were also marginally lower, down by 0.72%, which is helping to put the loonie on the back foot.
Technical Outlook for USDCAD
Today’s price action has touched off intraday lows at 1.31006, which is where previous clusters of price troughs occurred on 18/19 December 2019 and 12/13 October 2020. The daily candle of October 20 also found support at this level. Today’s bounce may provide buying momentum that takes price towards the 1.31501 resistance, with 1.32044 and 1.33487 resistance also lining up as potential upside targets.
On the flip side, a continuation of the downward wave after the initial upside correction of 13-15 October, must break down the 1.31006 support, with 1.30385 and 1.29953 lining up as viable downside targets.
USDCAD Daily Chart