The USD/CAD pair rebounds sharply after falling to near the round-level support of 1.3600 in Wednesday’s New York session. The Loonie asset recovers as poor Canadian Manufacturing Sales data weakens the Canadian Dollar.Earlier, the major faced selling pressure as the US Dollar tumbled after the United States (US) Bureau of Labor Statistics (BLS) has reported that the Consumer Price Index (CPI) data for April declines in consistent with estimates. However, the US Dollar has rebounded but is expected to remain on the edge.The expected decline in the US inflation data has boosted expectations about the Federal Reserve (Fed) to begin reducing interest rates from the September meeting. This has also improved investors risk-appetite. The S&P 500 has posted significant gains at open. 10-year US Treasury yields have plummeted to 4.38%. The US Dollar Index (DXY) reverses to 104.80 after printing a fresh monthly low near 104.50 but is still down.The US agency reported that annual headline, and core CPI (which strips off volatile food and energy prices) grew in line with estimates of 3.4% and 3.6% respectively. The decline in the inflation data came from lower prices of utility gas services and used cars and trucks. Rentals, transportation and medical services price index continue to gain higher.Apart from soft US inflation figures, weak monthly Retail Sales data also built pressure on the US Dollar. Monthly Retail Sales were unchanged while investors anticipated an increase by 0.4%.On the Loonie front, weak monthly Manufacturing Sales data for March has also built pressure on the Canadian Dollar. Statistics Canada reported that Manufacturing Sales contracted at a faster pace of 2.1% while investors forecasted a decline by 1.4%. In February, the economic data rose by 0.9%, upwardly revised from 0.7%. USD/CAD

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