Canadian Dollar halts the slide but fails to recover ground.

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• Canadian Dollar halts the slide but fails to recover ground.
• Canada’s PMI, Building Permits muddy the waters.
• BoC Governor Macklem due to speak in Montreal.

The Canadian Dollar (CAD) managed to pump the brakes on a two-day backslide on Tuesday, but a recovery seems limited as Canadian economic figures look mixed. Loonie bidders await Bank of Canada (BoC) Governor Tiff Macklem’s input. Governor Macklem will be giving a speech regarding the effectiveness and limitations of monetary policy at the Montreal Council on Foreign Relations at 18:00 GMT, but the speech text will be released at 17:45 GMT. BoC Macklem is expected to answer audience questions after the speech.

Canada saw a steep decline in the MoM Building Permits in December as well as downside revisions to the previous months’ releases, though the revision-heavy indicator is prone to having a muted impact. The seasonally-adjusted Ivey Purchasing Managers Index (PMI) for January ticked slightly higher, helping to offset any bearish trickles from Building Permits. Flat Crude Oil markets are also keeping the Canadian Dollar afloat but price action lacks momentum.

The Canadian Dollar (CAD) is broadly mixed on Tuesday but looks upward. The CAD is down a quarter of a percent against the Australian Dollar (AUD) and a tenth of a percent against the Japanese Yen. The CAD is also up around a quarter of a percent against the US Dollar (USD) and the Euro (EUR).

USD/CAD drifted into a near-term ceiling at 1.3540 as the pair cycles near the 1.3500 handle. The pair climbed 1.33% bottom-to-top after the US Dollar rebounded against the Canadian Dollar late last week, and the CAD is looking for a foothold to make a recovery and drag the USD/CAD back below the 1.3500 level. This would be back toward the 200-hour Simple Moving Average (SMA) at 1.3450.

USD/CAD is struggling to maintain bullish momentum after breaking into the topside of the 200-day SMA on Monday, and the pair is at risk of getting dragged back into congestion between 1.3476 and 1.3426 as the 200-day and 50-day SMAs consolidate.

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