USD/CAD moves higher, testing highs at 1.3500

The greenback is adding to its earlier gains vs. its Canadian neighbour, lifting USD/CAD to fresh daily tops around 1.3500 the figure.

USD/CAD bid after data

Spot picked up extra pace after US inflation figures gauges by the PCE showed consumer prices rose 1.7% on a year to April and 0.2% inter-month. Further data saw personal income and personal spending increasing at a monthly 0.4%.

Additional data showed house prices measured by the S&P/Case-Shiller index up

5.9% YoY, surpassing estimates.

In Canada, the current account deficit widened to $14.1 billion during the first quarter, more than initially forecasted.

CAD is also deriving weakness from the softer tone in crude oil prices, with the barrel of West Texas Intermediate shedding nearly 1% around the $49.30 region ahead of the weekly report on US stockpiles by the API.

USD/CAD significant levels

As of writing the pair is up 0.31% at 1.3500 and a break above 1.3508 (50% Fibo of the April-May rally) would aim for 1.3541 (high May 24) and then 1.3575 (38.2% Fibo of the April-May rally). On the flip side, the next down barrier is located at 1.3424 (low May 29) followed by 1.3385 (low May 25) and finally 1.3356 (76.4% Fibo of the April-May rally).