USD/CAD sinks to 1.2830 ahead of US CPI

The greenback remains on the defensive on Tuesday, now dragging USD/CAD to fresh lows in the 1.2830 area.

USD/CAD weaker, focus on US data

The pair has dropped to fresh 2-month lows in the vicinity of 1.2820 following a renewed and strong selling bias around the greenback, at the same time breaking below the base of the rising channel off 2016 low seen in May.

Adding to CAD’s bid tone, crude oil prices are advancing for the second consecutive session, pushing the barrel of West Texas Intermediate to the boundaries of the $46.00 mark, multi-day tops.

Later in the NA session, US CPI for the month of July will grab all the attention, followed by Housing Starts, Building Permits, Industrial Production and Fedspeak (Lockhart and Bullard). In Canada, June’s Manufacturing Shipments are only expected.

USD/CAD significant levels

As of writing the pair is retreating 0.73% at 1.2829 and a break below 1.2674 (low Jun.23) would aim for 1.2651 (low Jun.8) and finally 1.2458 (2016 low May 3). On the upside, the initial hurdle aligns at 1.2978 (55-day sma) followed by 1.3078 (20-day sma) and then 1.3202 (high Aug.5).