USD/CAD briefly spiked to 1.3597 on Thursday before retreating to 1.3541 following US Personal Consumption Expenditure Price Index (PCE) data that met market expectations. Canadian Gross Domestic Product (GDP) figures were mixed, with the annualized reading beating forecasts but the MoM figure falling short.

Friday brings a crucial set of manufacturing releases, including the Canadian S&P Global Manufacturing PMI, US S&P and ISM Manufacturing PMIs, and the Michigan State University Consumer Sentiment Index. Alongside these releases, comments from Federal Reserve (Fed) officials will be closely watched for any shift in sentiment towards potential rate cuts.

Technically, USD/CAD remains within familiar short-term levels after testing 1.3540. The week’s high at 1.3606 continues to act as resistance, while the 200-hour Simple Moving Average (SMA) at 1.3515 provides support. Thursday’s candlestick pattern suggests a lack of strong directional bias. Despite pulling back from the 200-day SMA at 1.3478, USD/CAD remains up over 3% from its recent swing low near 1.3200.