USD/CAD: Canada’s housing starts fell more than market expectations in July


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.25% against the CAD and closed at 1.3051.

Macroeconomic data revealed that Canada’s seasonally adjusted housing starts declined to a level of 206.3K in July, compared to a revised level of 246.2K in the prior month. Market participants had anticipated the housing starts to ease to a level of 219.0K.

In the Asian session, at GMT0300, the pair is trading at 1.3049, with the USD trading marginally lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.3012, and a fall through could take it to the next support level of 1.2975. The pair is expected to find its first resistance at 1.3075, and a rise through could take it to the next resistance level of 1.3101.

Trading trend in the Loonie today is expected to be determined by the release of Canada’s unemployment rate for July, due to be released later in the day.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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