USD/CAD finds support around 1.2300

- Spot met dip-buyers around 1.2300.

- CA headline CPI contracted 0.4% MoM in December.

- Flash US Q4 GDP missed consensus at 2.6%.

After dropping to session lows in the 1.2300 region during early trade, USD/CAD found some buying interest and is now hovering over the 1.2340 region, albeit still in negative figures for the time being.

USD/CAD upside stalled below 1.2400

The pair has resumed the downside following yesterday´s advance to the vicinity of 1.2400 the figure in response to pro-USD comments by President Trump at the WEF in Davos. Despite Trump differentiated from previous comments from US Treasury Secretary S.Mnuchin (´a weaker USD is good for US trade´), the greenback remained unable to sustain those gains, as the generalized sentiment surrounding the buck is still (very?) negative.

US and Canadian releases earlier today also probed to be inocuous regarding the pair´s price action, which seems to be more focused on the current NAFTA negotiations and the BoC, Fed next steps on monetary policy.

On the data front, advanced US GDP figures expect the economy to expand at an annualized 2.6% in the October-December period (vs. 3.0% forecasted) while durable goods orders expanded more than initially estimated during the last month of 2'017. In Canada, headline consumer prices contracted at a monthly 0.4% in December while prices stripping food and energy costs went down 0.5% MoM.

USD/CAD relevant levels

As of writing, spot is losing 0.50% at 1.2315 with the immediate support at 1.2302 (low Jan.26) followed by 1.2281 (low Jan.25) and then 1.2059 (2017 low Sep.8). On the other hand, a surpass of 1.2411 (10-day sma) would expose 1.2457 (21-day sma) and finally 1.2469 (23.6% Fibo of 2017 drop).