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USDCAD Continues Reversal Of Prior Oversold Conditions

CANADA
  • USDCAD is drifting higher again, nearing 1.355 for +0.5% on the day and +1.3% on the week in a solid reversal of prior oversold conditions.
  • The earlier post-US PMI high of 1.3563 forms initial resistance having pushed through 1.3554 (Apr 10 high) to open 1.3582 (50% retrace of Mar 10-Apr 14 bear leg).
  • There was limited reaction in the pair to CAD retail sales with a weak March advance release (caveated by a low response rate), but it helps CAD underperform more broadly with only AUD and NZD weaker on the day.

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