USD/CAD Rebounds to 1.3500 Amid Mixed Market Reaction to US CPI Data
The Canadian Dollar (CAD) experienced mixed performance on Tuesday, gaining against some currencies but losing ground against the US Dollar (USD). US CPI data showed higher-than-expected headline inflation but an overall decline, fueling Fed rate cut expectations.
Key Points:
- US CPI Impact: Mixed inflation data leaves the CAD vulnerable to broader market movements.
- Limited Canadian Data: This week's low-tier Canadian economic releases are unlikely to have a significant impact.
Technical Outlook:
- USD/CAD Rebound: The pair bounces back to the 1.3500 level within a familiar trading range.
- 200-day SMA as Pivot: The 200-day SMA (1.3478) acts as a crucial support level. A break above could trigger a move towards 1.3600, while failure could lead to a drop towards 1.3360.