USD/CAD surrenders gains ahead of US CPI

After testing the 1.2900 handle in early trade, USD/CADhas given away some of those gains and returned to the 1.2830 area.

USD/CAD bid ahead of data

The pair keeps its daily gains despite the upside momentum in the greenback seems to be taking a breather ahead of US CPI. 

In addition, crude oil prices have been recovering after a brief dip below the $41.00 mark in early trade, lending some support to CAD.

Data wise, market consensus expects headline consumer prices to have risen 1.1% on a year to March, while Core prices are seen at 2.3% on an annualized basis. In Canada, New Housing Price Index is also due, expected to gain 0.1% MoM in February.

USD/CAD significant levels 

As of writing the pair is up 0.15% at 1.2833 and a breakout of 1.3046 (20-day sma) would open the door to 1.3208 (23.6% Fibo of 1.4692-1.2750) and then 1.3219 (high Apr.5). On the flip side, the next support aligns at 1.2744 (2016 low Apr.13) followed by 1.2652 (low Jul.10 2015) and finally 1.2124 (monthly low Jun.24 2015).