USD/CAD back to test 1.3100 ahead of EIA

USD/CAD remains on the defensive today, currently testing the 1.3110/00 band after fading the spike to daily tops in the 1.3130 area.

USD/CAD focus on oil, BoC

Spot is retreating for the second consecutive session so far, extending the rejection from multi-week peaks in levels just shy of the 1.3200 mark recorded yesterday. In the meantime, CAD continues to derive support from crude oil prices, with WTIapproaching the psychological handle at $50.0 per barrel.

Data wise in the US economy, April’s Goods Trade Balance showed a deficit of $57.53 billion vs. $60.10 initially forecasted. Next on tap will be the advanced Services PMI measured by Markit and the weekly report on crude oil inventories by EIA, all preceding key FOMC speakers: Harker, Kashkari and Kaplan.

On the Canadian side, the BoC is expected to keep its monetary status quo unchanged at today's meeting.

USD/CAD significant levels 

As of writing the pair is losing 0.12% at 1.3112 and a break below 1.2986 (23.6% Fibo of 1.4692-1.2458) ahead of 1.2946 (55-day sma) and then 1.2925 (20-day sma). On the flip side, the next hurdle lines up at 1.3188 (high May 24) followed by 1.3312 (38.2% Fibo of 1.4692-1.2458) and finally 1.3366 (200-day sma).