Intraday analysis: USD/CAD soars after Canada retail data

NEW YORK (Forex News Now) – The Canadian dollar tumbled to a 7-week low against its U.S. counterpart on Tuesday, in the wake of disappointing data on Canadian retail sales and amid growing fears over the global recovery.

In early European currency market trading, USD/CAD struck 1.0663, the pair’s highest since July 6. The currency pair later retreated slightly to trade at 1.0653, up a huge 1.24% on the day.

Canada’s statistics bureau said earlier that retail sales dropped 0.5 percent month-on-month in June, after a downwardly revised drop of 0.3 percent in May. Analysts had expected modest growth of 0.1percent in June, two real time forex news outlets reported.

According to intraday analysis, USD/CAD was likely to touch immediate support around Monday’s low, 1.0444, and encounter resistance around the high of May 26, 1.0745.

FX traders, meanwhile, awaited key data on the U.S. housing market – a report on existing home sales – which was due to be published later in the day.

Elsewhere, the loonie slumped versus the yen: CAD/JPY traded at 78.74, down a massive 2.7 percent.