USD/CAD trims losses, back near 1.2300
- Canadian GDP came in at 0.4% in November.
- US ADP report surprised to the upside in January.
- FOMC meeting seen on the hawkish side today.
The Canadian Dollar is appreciating sharply vs. its American counterpart on Wednesday, forcing USD/CAD to test fresh lows in the mid-1.2200s in the wake of the release of GDP figures.
USD/CAD now looks to the Federal Reserve
Spot quickly dropped to fresh multi-month lows in the mid-1.2200s after Canadian GDP figures showed the economy expanded 0.4% during November, matching previous estimates.
Additional data in Canada saw raw material price index contracting 0.9% in December and industrial product price dropping 0.1% during the same period.
In the US docket, the ADP report surprised markets to the upside, adding more than 230k jobs in January, more than the 185K previously expected.
The pair accelerated the downside today to levels last seen in September 2017 in the mid-1.2200s, although it managed to lure in some dip-buyers and regain the vicinity of 1.2300 the figure soon afterwards.
Later in the session, Janet Yellen will preside her last FOMC meeting, with consensus among investors expecting a hawkish message from the Committee.
USD/CAD significant levels
As of writing the index is down 0.32% at 1.2294 facing the immediate support at 1.2255 (low Jan.31) followed by 1.2119 (low Sep.15 2017) and then 1.2059 (2017 low Sep.8). On the other hand, a breakout of 1.2377 (10-day sma) would expose 1.2381 (high Jan.30) and finally 1.2424 (21-day sma).