Canadian Dollar extends the downside below 1.3750 ahead of Canadian Retail Sales data

FXStreet
Updated May 24, 2024 05:29
Mitrade
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Source: DepositPhotos

■USD/CAD holds positive ground around 1.3730 in Friday’s Asian session. 

■The US S&P Global PMI came in better than expectations in May. 

■The further decline of crude oil prices weighs on the Loonie. 


The USD/CAD pair trades on a stronger note for the fifth consecutive day near 1.3730 on Friday during the Asian trading hours. The stronger US Dollar (USD) following the upbeat US PMI data provides some support to the pair. Traders await the Canadian Retail Sales and US Durable Goods Orders for fresh impetus. Also, the Fed’s Waller is set to speak later in the day. 

The business activity in the US private sector grew at a faster pace than in April, according to the S&P Global. The flash US Composite Purchasing Managers Index (PMI) came better than the market expectation, jumping to 54.4 in May from 51.3 in April. The Manufacturing PMI rose to 50.9 in May versus 50.0 in April, above the market consensus of 50.0. The Services PMI jumped to 54.8 in May, better than the estimation and previous reading of 51.3. Following the upbeat US PMI reports, the USD Index (DXY) has risen above the 105.00 hurdle and created a tailwind for the USD/CAD pair. 

On the Loonie front, the decline of crude oil prices exerts some selling pressure on the commodity-linked Canadian Dollar (CAD) as Canada is the largest oil exporter to the United States. Additionally, the expectation that the Bank of Canada (BoC) will cut the interest rate before the US Fed might weigh on the Loonie against the USD. The money markets are pricing in a 53% chance of 25 basis points (bps) cut in June, while the possibility of a July rate cut is fully priced in.  


USD/CAD


Overview
Today last price 1.3728
Today Daily Change -0.0002
Today Daily Change % -0.01
Today daily open 1.373
 
Trends
Daily SMA20 1.3676
Daily SMA50 1.3647
Daily SMA100 1.3563
Daily SMA200 1.3572
 
Levels
Previous Daily High 1.3744
Previous Daily Low 1.3657
Previous Weekly High 1.3691
Previous Weekly Low 1.359
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.371
Daily Fibonacci 61.8% 1.369
Daily Pivot Point S1 1.3676
Daily Pivot Point S2 1.3623
Daily Pivot Point S3 1.359
Daily Pivot Point R1 1.3763
Daily Pivot Point R2 1.3797
Daily Pivot Point R3 1.385

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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