- USD/CAD consolidated the recent gains to multi-week tops.
- Mixed US Durable Goods Orders failed to provide any impetus.
- Recovering oil prices further collaborated towards capping gains.
The USD/CAD pair remained confined in a narrow trading band below the 1.3200 round-figure mark and moved little post-US macro data.
Data released this Tuesday showed that US Durable Goods Orders recorded a strong 2.4% growth in December, reversing the previous month’s awful decline of 2.1% and surpassing even the most optimistic estimates by a big margin.
USD/CAD seemed unaffected by mixed US data
The positive reading, to a larger extent, was negated by the disappointing release of core durable goods orders, which fell 0.1% as against 0.2% rise expected and eventually did little to impress the US dollar bulls or provide any impetus to the major.
Meanwhile, the bid tone surrounding the USD remained unabated in the wake of a turnaround in the global risk sentiment, which allowed the US Treasury bond yields to stage a solid intraday recovery from the lowest level in more than three months.
The risk-on mood also helped boost demand for perceived riskier assets, like oil, which underpinned demand for the commodity-linked currency – the loonie – and turned out to be one of the key factors keeping a lid on any strong gains.
Tuesday’s US economic docket also features the release of the Conference Board’s Consumer Confidence Index, which might influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch