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USD/CAD testing 1.3080 on data

FXStreet (Edinburgh) - The Canadian dollar is now surrendering initial gains vs. the greenback, lifting USD/CAD to challenge session tops near 1.3080.

USD/CAD firmer post-data

The pair gained further traction after Producer Prices in the US economy surprised investors to the upside, with the Core reading rising at an annual pace of 0.6% while headline prices contracted less than expected 0.8% on a year to July. On the Canadian side, Manufacturing Shipments have expanded 1.2% from May to June vs. forecasts for a 2.1% expansion.

Next on tap will be US Capacity Utilization, Industrial Production and the Reuters/Michigan index, expected at 78%, 0.3% and 93.4, respectively.

USD/CAD levels to consider

At the moment the pair is advancing 0.05% at 1.3068 with the next hurdle at 1.3086 (high Aug.14) ahead of 1.3159 (high Aug.12) and then 1.3183 (high Aug.10). On the other hand, a breakdown of 1.3043 (low Aug.14) would open the door to 1.2957 (low Aug.13) and finally 1.2940 (low Jul.31).

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