For the 24 hours to 23:00 GMT, the USD rose 0.76% against the CAD and closed at 1.2792.
The Canadian Dollar lost ground, after the Bank of Canada (BoC), at its latest monetary policy meeting, struck a cautious tone on further interest rate hikes.
The BoC, in a widely anticipated move, opted to leave the benchmark interest rate steady at 1.0%. In a statement accompanying its rate decision, the central bank stated that interest rate hikes will likely be required over time, citing encouraging job and wage growth, but reiterated that the Governing Council will continue to be “cautious” about further rate hikes and added that any move will be based on the outlook for inflation and wage growth.
In the Asian session, at GMT0400, the pair is trading at 1.2801, with the USD trading 0.07% higher against the CAD from yesterday’s close.
The pair is expected to find support at 1.27, and a fall through could take it to the next support level of 1.26. The pair is expected to find its first resistance at 1.2854, and a rise through could take it to the next resistance level of 1.2908.
Moving ahead, investors would keep a close watch on Canada’s building permits data for October and Ivey–PMI for November, both due to release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.