USD/CAD keeps lows near 1.2850, BoC eyed

The Canadian dollar is advancing further vs. its American peer, relegating USD/CAD to trade in the lower bound of the range in the mid-1.2800s.

USD/CAD attention to BoC

The pair has gained extra downside pressure after RBC’s manufacturing PMI dropped to 51.8 during June vs. May’s 52.1, while market participants get ready for the BoC’s Business Outlook Survey due later.

Adding to CAD buoyancy, the barrel of West Texas Intermediate remains around the $49.00 mark, reflecting the lack of direction of the broader markets.

Spot continues to retrace the post-‘Brexit’ spike to levels just above the 1.3100 handle posted on June 24, trading in multi-day troughs at the same time.

USD/CAD significant levels

As of writing the pair is retreating 0.44% at 1.2853 and a breach of 1.2674 (low Jun.23) would aim for 1.2651 (low Jun.6) and then 1.2458 (2016 low May 3). On the flip side, the next resistance aligns at 1.3030 (100-day sma) ahead of 1.3121 (high Jun.27) and then 1.3191 (high May 24).