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.
