USD/CAD: Canada’s housing starts surprisingly dropped in May, while unemployment rate remained steady in the same month


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.33% against the CAD and closed at 1.2931 on Friday.

Data released on Friday indicated that Canada’s seasonally adjusted housing starts unexpectedly declined to a level of 195.6K in May, defying market expectations for a rise to a level of 220.0K. In the prior month, housing starts had registered a revised level of 216.8K. Meanwhile, the nation’s unemployment rate remained unchanged at a rate of 5.8% in May, in line with the market expectations

In the Asian session, at GMT0300, the pair is trading at 1.2965, with the USD trading 0.26% higher against the CAD from Friday’s close.

Separately, the Canadian dollar declined against the dollar, after US-Canada trade dispute heightened.

The pair is expected to find support at 1.2912, and a fall through could take it to the next support level of 1.2858. The pair is expected to find its first resistance at 1.3029, and a rise through could take it to the next resistance level of 1.3092.

With no macroeconomic releases in Canada today, investors would look forward to global macroeconomic events for further direction.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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