USD/CAD: Canada’s housing starts surprisingly rose in October, building permits exceeded market expectations in September


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.3% against the CAD and closed at 1.2731.

The Canadian Dollar gained ground against the USD, following a pair of upbeat Canadian economic reports.

Data showed that Canada’s seasonally adjusted housing starts registered an unexpected rise to a level of 222.8K in October, after recording a revised level of 219.3K in the prior month. Markets had anticipated the nation’s housing starts to ease to a level of 211.0K. Moreover, the nation’s building permits rose 3.8% on a monthly basis in September, advancing for the first time in three months, amid a rise in the non-residential sector. Building permits had registered a revised fall of 5.1% in the previous month, while markets had expected for a gain of 1.0%.

In the Asian session, at GMT0400, the pair is trading at 1.2735, with the USD trading marginally higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.2709, and a fall through could take it to the next support level of 1.2683. The pair is expected to find its first resistance at 1.2768, and a rise through could take it to the next resistance level of 1.2801.

Moving ahead, investors would closely monitor Canada’s new house price index for September, due to release later in the day.

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

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