USD/CAD: BoC holds benchmark interest rate steady at 0.5%


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.14% against the CAD and closed at 1.3327.

Yesterday, the Bank of Canada (BoC) left key interest rate steady at 0.5% and reiterated previous warnings about the “significant uncertainties” faced by the Canadian economy. The central bank further stated that while there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada.

In other economic news, Canada’s RBC manufacturing PMI climbed to a level of 54.7 in February, accelerating to its highest level since November 2014 and compared to a level of 53.5 in the preceding month.

In the Asian session, at GMT0400, the pair is trading at 1.3345, with the USD trading 0.14% higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.3302, and a fall through could take it to the next support level of 1.3258. The pair is expected to find its first resistance at 1.3374, and a rise through could take it to the next resistance level of 1.3402.

Moving ahead, investors will eye crucial Canadian GDP data for December, scheduled to release later in the day, to gauge strength in the nation’s economy.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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