USD/CAD returns to 1.2800 on firmer dollar, data eyed

The better tone around the greenback is now helping USD/CAD to regain the 1.2800 neighbourhood ahead of key data in Canada.

USD/CAD looks to CPI

The pair is posting gains for the first time after nine consecutive sessions with losses, shedding more than 4 cents since tops in the vicinity of 1.3200 the figure posted in early August.

A decent daily pick up of the US dollar is so far offsetting the persistent recovery in crude oil prices, which has lifted the barrel of West Texas Intermediate above the key $48.00m mark ahead of the opening bell in Europe.

Next of relevance for the pair will be Canadian inflation figures tracked by the CPI and Retail Sales. Prior surveys expect consumer prices to have contracted at a monthly 0.1%, while headline sales are seen expanding 0.5% during June.

USD/CAD significant levels

As of writing the pair is advancing 0.10% at 1.2795 and a breakout of 1.2912 (base of the 3-month rising channel prev support now resistance) would aim for 1.2932 (100-day sma) and then 1.2966 (55-day sma). On the other hand, the immediate support aligns at 1.2787 (low Aug.18) followed by 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8).