USD/CAD: Canada’s housing starts unexpectedly dropped in December


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.54% against the CAD and closed at 1.3059.

Data showed that Canada’s seasonally adjusted housing starts unexpectedly fell to a level of 197.3K in December, defying market anticipations for a rise to a level of 210.0K. In the prior month, housing starts had registered a revised level of 204.3K. Moreover, the nation’s building permits unexpectedly declined 2.4% on a monthly basis in November, confounding market expectations for an advance of 1.0%. In the prior month, building permits had recorded a drop of 1.5%.

In the Asian session, at GMT0400, the pair is trading at 1.3063, with the USD trading marginally higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.3030, and a fall through could take it to the next support level of 1.2996. The pair is expected to find its first resistance at 1.3101, and a rise through could take it to the next resistance level of 1.3138.

Going ahead, traders would await Canada’s unemployment rate for December, set to release later in the day.

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

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