USDCAD Movement
For the 24 hours to 23:00 GMT, USD rose 1.28% against the CAD to close at 1.0166.
The Canadian dollar declined after Bank of Canada (BoC) kept its overnight rates unchanged, citing greater risks to the global economy and rising market volatility.
BoC kept its target for the overnight rate unchanged at 1.0% and indicated that it may maintain its benchmark interest rate at the current levels for an extended period, amidst worsening global economic conditions. Further, it slashed its growth forecasts for 2011 and 2012 and lowered inflation expectations, as it predicted a brief recession in the eurozone and weak growth in the U.S. through the first half of next year.
In Canada, retail sales edged up 0.5% (M-o-M) to $37.8 billion in August, compared to a 0.6% (M-o-M) fall in July.
In the Asian session, at GMT0300, the pair is trading at 1.0152, with the USD trading 0.14% lower from yesterday’s close.
The pair is expected to find support at 1.0024, and a fall through could take it to the next support level of 0.9897. The pair is expected to find its first resistance at 1.0246, and a rise through could take it to the next resistance level of 1.0341.
Investors are eying Bank of Canada monetary policy report to be released later today.
The currency pair is trading above its 20 Hr and its 50 Hr moving averages.
