USD/CAD drops to 1.3080 on US data

FXStreet (Edinburgh) - The greenback is losing part of its early shine vs. its Canadian peer on Tuesday, dragging USD/CAD to session lows in the 1.3080 area.

USD/CAD weaker on data

The pair left the area above the 1.3100 handle following mixed results from the US housing sector, where Building Permits rose to 1.119 M during July, missing prior estimates at 1.232 M and down from Junes 1.337 M (revised), while Housing Starts surprised markets to the upside, rising to 1.206 M vs. 1.190 M forecasted and 1.174 M previous.

The pair remains in a consolidative pattern around the 1.3000 key handle so far, amidst increasing cautious tone amongst market participants in light of the upcoming FOMC minutes (Wednesday).

USD/CAD levels to consider

At the moment the pair is advancing 0.19% at 1.3105 with the next hurdle at 1.3159 (high Aug.12) ahead of 1.3183 (high Aug.10) and then 1.3197 (high Aug.6). On the other hand, a breakdown of 1.3078 (low Aug.18) would open the door to 1.3043 (low Aug.14) and finally 1.2957 (low Aug.13).

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