USD/CAD steadies around 1.3200, looks to close sixth straight week in red
- USD/CAD is posting small daily gains around 1.3200 on Friday.
- Data from Canada showed sharp increase in Retail Sales in June.
- Upbeat PMI data from US helped DXY extend its daily rally.
The USD/CAD pair advanced to a fresh daily high of 1.3235 on Friday but lost its traction amid profit-taking ahead of the weekend. As of writing, the pair was trading near 1.3200, gaining 0.12% on the day. On a weekly basis, the pair looks to close in the negative territory for the sixth straight time.
DXY headed to post weekly gains
Earlier in the day, the data published by Statistics Canada showed that Retail Sales in June increased by 23.7%. However, this reading came in slightly below the advanced estimate of 24.5% and didn't allow the CAD to gather strength. Meanwhile, the broad selling pressure surrounding crude oil put additional weight on the commodity-sensitive loonie's shoulders. At the moment, the barrel of West Texas Intermediate is down 2.8% on the day at $41.55.
On the other hand, the IHS Markit's Manufacturing and Services PMI figures both rose in August and revealed an expansion in the US' private sector's business activity at a robust pace. The Manufacturing PMI advanced from 50.9 to 53.6 and the Services PMI improved from 50 to 54.8.
The US Dollar Index (DXY) extended its daily rally in the second half of the day and touched a weekly high of 93.42. At the moment, the index is up 0.73% on the day and remains on track to snap its 8-week losing streak.
Technical levels to watch for