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The Canadian Dollar gave up further ground to the US Dollar

The Canadian Dollar (CAD) climbed against most of its currency trading peers on Tuesday but fell back against the US Dollar (USD), which took the top spot as the best-performing major currency. Canada’s Consumer Price Index (CPI) inflation in December mostly came in at expectation, but a lack of price growth easing has trimmed market bets of a March rate cut from the Bank of Canada (BoC). The Canadian Dollar (CAD) is down around a quarter of a percent against the US Dollar on Tuesday but is climbing against the rest of its major currency peers.

The Canadian Dollar gained around half a percent against the Japanese Yen (JPY) and the Australian Dollar (AUD), while climbing over a third of a percent against the New Zealand Dollar (NZD) and the Euro (EUR). The USD/CAD rose back into the 1.3500 handle for the first time since mid-December as the US Dollar gained against the Loonie, dragging the pair higher after last week’s late bounce from the 200-hour Simple Moving Average (SMA) near 1.3350. Daily candlesticks have the USD/CAD climbing directly into the 200-day SMA, and continued bullish momentum faces a technical quagmire with the 50-day SMA descending into 1.3500 and set for a bearish cross of the long-term moving average. Continued bidding pressure will have the pair set for a fresh challenge of November’s peak near 1.3900, while the technical floor sits at December’s swing low of 1.3200.