USD/CAD sidelined around 1.3260 ahead of data

It seems the greenback has recovered the smile vs. its neighbour peer on Friday, now lifting USD/CAD close to session highs in the 1.3255/60 band.

USD/CAD looks to US, CAD data

The pair is back to the positive territory after three consecutive declines, including fresh 3-week lows following a renewed and strong offered bias around the buck, particularly intensified after the release of the FOMC minutes on Wednesday.

Adding to CAD strength, crude oil prices have shown some signs of recovery backed by the softer dollar and large draws in crude oil inventories during the last week, as reported by both the API (Wednesday) and the EIA (Thursday).

Ahead in the session, US and Canadian labour market figures will take centre stage, followed by US Factory Orders and the Ivey PMI in Canada. Market consensus sees Non-farm Payrolls coming in at 178K for the month of December, while the unemployment rate is seen ticking higher to 4.7% during the same period.

USD/CAD significant levels

As of writing the pair is gaining 0.29% at 1.3264 and a breakout of 1.3311 (38.2% Fibo of the 2016 drop) would open the door to 1.3383 (20-day sma) and finally 1.3463 (high Jan.3). On the other hand, the immediate support aligns at 1.3190 (low Jan.5) ahead of 1.3115 (2-month support line) and then 1.3078 (low Dec.14).