Canadian dollar rallied to the session high at 1.3247 against the US dollar, inflated by upbeat data. Canada retail sales showed larger than expected increase in April.

Retail sales rose to 0.85 in April, compared to 0.2% forecast and downward revised numbers in April from 0.7% to 0.5%.

Core retail sales which exclude automobiles rose by 1.5% in April vs 0.7% consensus and previous month drop revised from -0.2% to -0.1%.

Better than expected data boosted optimism over the Canadian economy.

Technical studies work in favor of Loonie, as past three days USDCAD rally have been capped by 200SMA. Fresh weakness took out initial support at 1.3283, provided by falling 10SMA and pressures Fibo 61.8% support at 1.3250, loss of which would further weaken near-term structure.