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Buy the rumour, sell the fact for the Canadian dollar on Friday

As suspected, the reaction in the USD/CAD to the better than expected ex-auto sales data (+1% versus +0.5% anticipated) was clearly priced into the market, after the USD/CAD had dropped by exactly 100 pips from the high the day before, as those sales figures hit the screen. The rebound that followed saw the USD/CAD eventually lift, from a session low at 1.3424, to as high as 1.3491 ahead of the US close. The USD/CAD later ended the week at 1.3483. That close was back above its 200 day moving average (now at 1.3461). It is not far removed from that closing level now this morning, having held a range so far today, covered by 1.3472 to 1.3490. There might be resistance in place at 1.3500 and then at the most recent high at 1.3524, if the rebound from the low at 1.3424 is set to continue 
 

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