USD/CAD off highs, returns below 1.2900

• The pair clinches fresh tops beyond 1.2900 and retreats.
• Canadian Ivey PMI jumped to 71.5 in April, crushing expectations.
• US Non-farm Payrolls disappointed estimates at 164K in April.

The positive note surrounding the greenback has lifted USD/CAD to fresh peaks above 1.2900 the figure, although the bullish attempt lacked of follow through.

USD/CAD keeps gains around 1.2880

CA regained some ground lost after Canadian Ivey PMI expanded more than initially estimated to 71.5 during last month, leaving behind forecasts at 60.2 and up from previous reading at 59.8

On the USD-side, April’s Payrolls came in on the soft side at 164K vs. 189K expected, while wage inflation also disappointed investors, expanding 0.1% MoM and 2.6% over the last twelve months. On the brighter side, the jobless rate ticked lower to 3.9%.

In the meantime, the pair keeps the daily range at/around the 1.2900 neighbourhood, with US-CA yield spread mainly driving the sentiment around spot.

USD/CAD significant levels

As of writing the index is up 0.10% at 1.2866 facing the next hurdle at 1.2917 (high May 4) followed by 1.2927 (38.2% Fibo of the 2017 drop) and finally 1.2946 (high Apr.2). On the downside, a breakdown of 1.2801 (low May 2) would pave the way for a test of 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2637 (200-day sma).