USD/CAD dips further post-data, around 1.3040

The Canadian Dollar is accelerating its gains vs. its American counterpart on Tuesday, sending USD/CAD to the lower bound of the range near 1.3040.

USD/CAD weaker on USD selling

The pair is challenging last week’s lows in the mid-1.3000s after Canadian GDP figures showed the economy has expanded more than expected in December 0.4%, reverting the previous 0.2% contraction.

Adding to the downside, US Employment Cost Index rose 0.5% during the October-December period, missing consensus and collaborating with the down move in the buck.

In the meantime, the greenback has intensified its descent after Trump’s trade advisor P.Navarro hinted at the fact that Germany could be benefiting from a ‘grossly undervalued’ euro.

Later in the session, the S&P Case-Shiller Index is due along with Chicago PMI and the Conference Board’s Consumer Confidence gauge. In addition, the API will report on the weekly US crude oil stockpiles.

USD/CAD significant levels

As of writing the pair is losing 0.60% at 1.3041 and a breach of 1.3016 (low Jan.17) would expose 1.3002 (low Oct.19) and them 1.2996 (low Sep.22). On the upside, the next barrier lines up at 1.3171 (high Jan.30) followed by 1.3186 (20-day sma) and finally 1.3293 (100-day sma).