- Existing Home Sales in Canada fell 2.9% in January.
- Industrial Production in US continued to contract in January.
- WTI remains on track to close week in positive territory.
The USD/CAD pair dropped to a daily low of 1.3233 during the early trading hours of the American session but easily erased a large portion of its losses. As of writing, the pair was down 0.1% on the day at 1.3255.
DXY loses traction after uninspiring US data
The mixed macroeconomic data releases from the US triggered a short-lasting USD selloff on Friday. Although Retail Sales in the US rose 0.3% in January as expected, Retail Sales Control Group slumped to 0% in the same period to hurt the USD. Additionally, the monthly data published by the Federal Reserve showed that Industrial Production contracted by 0.3% in January.
Finally, the University of Michigan’s Consumer Confidence Index improved to 100.9 to come in better than analysts’ estimate of 99.5.
The US Dollar Index (DXY) pulled away from the multi-month highs that it set at 99.16 earlier in the day but steadied above 99. At the moment, the index is down 0.04% on the day at 99.06, still up around 0.4% since Monday.
On the other hand, the data from Canada revealed that Existing Home Sales in January fell 2.9% to miss the market expectation for a decline of 0.1% and made it tough for the CAD to preserve its strength. Furthermore, the barrel of West Texas Intermediate (WTI) failed to hold above $52 to help the pair rebound from its session lows. Nevertheless, the WTI remains on track to snap its five-week losing streak.
Technical levels to watch for