USD/CAD tests lows near 1.3060 on CPI

The Canadian Dollar is extending its gains vs. its neighbour on Friday, dragging USD/CAD to fresh daily lows in the 1.3060 region.

USD/CAD weaker post-CPI

CAD met extra upside pressure after January’s inflation figures tracked by the CPI rose more than expected 2.1% on an annualized basis and 0.9% inter-month. Additionally, Core consumer prices measured by the Bank of Canada rose 1.7% over the last twelve months and 0.5% MoM.

Spot has briefly dropped to the 1.3060 area in the wake of the release, where it is now holding against the backdrop of a broad-based selling atmosphere around the buck.

In the US data space, Consumer Sentiment for the month of February is due along with New Home Sales.

USD/CAD significant levels

As of writing the pair is losing 0.29% at 1.3066 facing the next support at 1.3057 (low Feb.17) and then 1.3007 (low Feb.16). On the other hand, a breakout of 1.3118 (high Feb.24) would aim for 1.3148 (200-day sma) and finally 1.3211 (high Feb.22).