USD/CAD down 70 pips on economic data
Simultaneous reports of strong Canadian retail sales and higher-than-expected inflation knocked USD/CAD lower.
The pair hit 9-month lows earlier this week as the rally in oil prices boosted the loonie. Yesterday and earlier today, the downside momentum had begun to ebb but it was re-ignited by the round of data.
Retail sales rose 0.2% ex-autos in Feb compared to -0.7% expected. Core CPI climbed 2.1% year-over-year versus the 1.7% forecast.
USD/CAD immediately fell to a session low of 1.2656 from 1.2730.
Technically, there isn't much to support USD/CAD aside from the June highs and oversold conditions.
The loonie is a slave to oil and crude has rallied non-stop this week despite waves of negative headlines this week, beginning with the Doha fiasco.
