USD/CAD Falls on Weak Data as Dollar Broadly Retreats

The US Dollar Index declined 0.4% as broad-based weakness emerged across major pairs, with USD/CAD experiencing particularly sharp losses of 0.8% to 1.3620. Canadian economic data surprised to the upside, while disappointing US figures weighed on dollar sentiment. The AUD/USD pair gained 0.6% to 0.6580, benefiting from risk-on sentiment and commodity strength. NZD/USD advanced 0.5% to 0.6120, supported by improving global risk appetite. S&P 500 futures indicated a positive open, reinforcing the risk-on environment that typically pressures the safe-haven dollar. Technical indicators suggest USD/CAD has broken below key support at 1.3650, opening the path toward 1.3580. The broader dollar weakness reflects growing concerns about US economic momentum, with traders reassessing Fed rate expectations. Near-term dollar direction will depend heavily on upcoming US employment and inflation data releases.