USD/CAD extends the breakdown of 1.3300 ahead of US ADP

The greenback remains on a weak fashion during the second half of the week, sending USD/CAD to current daily lows in the 1.3260 region.

USD/CAD attention to data, oil

Spot met increasing downside pressure on Thursday, retreating for the third session in a row and prompting sellers to break below the key support at 1.3300 the figure to print fresh 3-week lows. On its way down, the pair shed around 2.5% from late-December tops just above the 1.3600 handle.

The sharp down-move remains backed by a softer greenback, which failed to gather extra traction despite the hawkish tone from the FOMC minutes on Wednesday, as uncertainty seems to have installed among governors regarding the potential policies to be implemented by president-elect Donald Trump, particularly on the fiscal side.

In the meantime, CAD remains quite supported by crude oil dynamics, with the barrel of West Texas Intermediate giving away part of yesterday’s advance following a significant draw in US crude stockpiles, as reported by the API late on Wednesday.

On the US data front, the labour market will take centre stage in light of the releases of the ADP report and Initial Claims, followed by the ISM Non-manufacturing and the weekly report on crude inventories by the EIA.

USD/CAD significant levels

As of writing the pair is losing 0.26% at 1.3266 and a breakdown of 1.3255 (low Jan.5) would aim for 1.3115 (2-month support line) and then 1.3078 (low Dec.14). On the other hand, the next up barrier is located at 1.3311 (38.2% Fibo of the 2016 drop) followed by 1.3392 (55-day sma) and finally 1.3463 (high Jan.3).