USD/CAD fails to sustain intraday gains

The US dollar started the year on a firm note, taking USD/CAD to the 1.3460 area, although it lost momentum and then turned intraday negative.

USD/CAD peaked at 1.3459 during the European session but failed to sustain gains and fell back to the 1.3415 area in quiet trading. At time of writing, the pair is trading at 1.3439, little changed on the day.

On the data front, the Canadian RBC manufacturing PMI came in at 54.3 in December, while the US ISM manufacturing PMI rose to 54.7 in December from 53.2 in November, surpassing expectations of 53.5 and marking the highest level for the index since December 2014.

USD/CAD levels to watch

In terms of technical levels, next resistances are seen at 1.3473 (10-day SMA), 1.3506 (Dec 30 high) and 1.3559 (Dec 29 high). On the other hand, supports could be found at 1.3395 (50-day SMA), 1.3364 (20-day SMA) and 1.3316 (Dec 19 low).