USD/CAD pushes higher above 1.27 after dismal Canadian GDP data

• Canadian GDP stays unchanged in October.
• The core-PCE price index in the U.S. beats expectations.
• DXY remains calm near 93.

The USD/CAD pair gained traction in the early NA session and gained nearly 100-pips in a matter of minutes to touch a fresh daily high at 1.2796. As of writing, the pair was trading at 1.2770, adding 0.22% on the day.

The pair's upsurge seems to be a product of a weakening loonie. Today's data from Canada showed that after expanding by 0.2% in September, the economic activity remained unchanged in October. The underlying details of the Statistics Canada's report showed that goods-producing industries contracted 0.4%, largely due to the mining, quarrying, and oil and gas extraction sector.

On the other hand, the annual core-PCE price index, the Fed's preferred measure of inflation, edged higher to 1.8% from 1.6% in November, moving closer to the Fed's target of 2%. A separate report revealed that personal spending increased by 0.6% on a monthly basis in November in the U.S. Following the upbeat data the US Dollar Index rose towards the 93 mark and was last seen at 92.98, up 0.15% on the day. 

With the Christmas holiday coming up, the pair is likely to remain in a tight range in the remainder of the day.

Technical levels to consider

The pair could face the first technical support at 1.2700 (daily low/psychological level) ahead of 1.2625 (Dec. 5 low) and 1.2500 (psychological level). On the upside, resistances align at 1.2785 (50-DMA), 1.2830 (200-DMA) and 1.2920 (Dec. 19 high). The RSI indicator on the daily chart recently recovered to the 50 handle, suggesting that the bearish pressure is fading away.