The USD/CAD pair maintained its offered tone and is now heading back towards monthly lows following the release of inflation data from the US.
Data released just a short while ago showed US consumer inflation, as measured by CPI, rose 0.3% on a monthly basis during September, lifting the yearly CPI to 1.5%, and matched consensus estimates. Markets, however, seemed disappointed as the core reading, which excludes food and energy, fell more-than-expected and came-in to show a 0.1% m-o-m rise as against a rise of 0.3% recorded in the previous month.
Meanwhile, a better-than-expected release of Canadian manufacturing sales for the month of August provided an additional boost to the Canadian Dollar and exerted fresh selling pressure around the pair.
Technical levels to watch
Renewed weakness below 50-day SMA near 1.3070 region, leading to a break below session low support near 1.3050 area, is likely to accelerate the slide towards 100-day SMA support near 1.3025-20 band. Conversely, sustained recovery back above 1.3100 handle might now confront resistance near 1.3125-30 session high region above which the pair is likely to make a fresh attempt towards retesting the very important 200-day SMA near 1.3170-75 region.