USD/CAD off lows near 1.3040 ahead of data, Fedspeak

The Canadian dollar is now accelerating its daily gains vs. its American neighbour, with USD/CAD testing the lower bound of the range near 1.3030.

USD/CAD weaker ahead of data, oil gains

CAD is deriving extra support from the better tone around crude oil prices, with the West Texas Intermediate hovering over the $46.00 mark amidst rising speculations on a potential deal over an output freeze at the OPEC meeting next week.

On the other hand, the greenback – tracked by the US Dollar Index – keeps the steady stance without a clear direction for the time being, ahead of the key speeches by FOMC’s Harker, Lockhart and Mester.

Back to Canada, inflation figures gauged by the CPI are expected to have risen at an annualized 1.4% during August, up from July’s 1.3% gain. On the same line, July’s Retail Sales are seen expanding 0.1% on a monthly basis vs. the previous 0.1% drop.

USD/CAD significant levels

As of writing the pair is up 0.01% at 1.3044 and a breakout of 1.3249 (high Sep.16) would open the door to 1.3253 (high Jul.27) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the other hand, the next support aligns at 1.2996 (low Sep.22) ahead of 1.2818 (low Sep.7) and then 1.2759 (low Aug.18).