USD/CAD choppy above 1.3700 post-data

The greenback is trading on the defensive vs. its Canadian peer on Thursday, prompting USD/CAD to retreat from daily lows near 1.3750.

USD/CAD offered after data

The pair keeps the area above 1.3700 the figure after US trade deficit shrunk to $43.70 billion during March vs.$44.5 billion initially forecasted and down from February’s $43.8 billion deficit.

Additionally, Initial Claims rose to 238K WoW, bettering consensus and taking the 4-Week Average to 243.00K from 242.25K. Still in the US, Unit Labor Costs is seen expanding 3.0% in Q1 while Non-farm Productivity is expected to contract 0.6% during the same period.

In Canada, March’s trade deficit narrowed to $0.14 billion from $1.08 billion deficit seen in the previous month.

Spot, in the meantime, is posting losses for the first time after nine consecutive daily advances so far, trading in levels last seen in February 2016 well above 1.3700 the figure.

Later in the NA session, US Factory Orders are due followed by the speech by BoC’s S.Poloz.

USD/CAD significant levels

As of writing the pair is losing 0.04% at 1.3726 and a break below 1.3677 (low May 3) would open the door to 1.3632 (23.6% Fibo of the Apri-May rally) and finally 1.3553 (38.2% Fibo of the April-May rally). On the flip side, the next up barrier is located at 1.3746 (high May 4) seconded by 1.3759 (2017 high May 2) and then 1.3861 (high Feb.24 2016).