USD/CAD slumps toward 1.3400 after US and Canada data releases
- USD/CAD is falling for the third straight day on Wednesday.
- Annual inflation in Canada rose to 0.7% in June.
- US Dollar Index stays below after mid-tier data releases from the US.
The USD/CAD pair staged a technical rebound during the first half of the day but lost its traction before reaching 1.3500. With the greenback struggling to find demand during the American session, the pair extended its slide and was last seen trading at its lowest level since June 11th at 1.3406, where it was down 0.35% on the day.
Earlier in the day, the data published by Statistics Canada revealed that inflation in Canada, as measure by the Consumer Price Index (CPI), rose to 0.7% on a yearly basis in June. This reading came in higher than the market expectation of 0.2% and helped the CAD gather strength.
USD selloff continues on Wednesday
On the other hand, the US Dollar Index (DXY), which tracks the USD's performance against a basket of six major currencies, failed to stage a meaningful recovery with Wall Street's main indexes clinging to modest daily gains. At the moment, the DXY is losing 0.25% on the day at 94.92.
The data from the US on Wednesday showed that the Housing Price Index in May declined by 0.3% and Existing Home Sales surged by 20.7% in June. Nevertheless, markets largely ignored these data and the USD's correlation with US stocks remained intact.
In the meantime, crude oil is staying relatively quiet on Wednesday, allowing the USD's valuation to continue to drive the pair's action. At the moment, the barrel of West Texas Intermediate (WTI) is posting modest daily losses at $41.35.
Technical levels to watch for