USDCAD Movement
For the 24 hours to 23:00 GMT, USD declined 1.04% against the CAD to close at 0.9893. The Canadian Dollar rose, after Bank of Canada (BoC) signaled that it may need to start raising interest rates, preparing to lead the Group of Seven industrialized nations in lifting borrowing costs even as European debt crisis concerns have not fully faded. Additionally, BoC maintained its target for the overnight rate at 1.0%.
In economic news, the manufacturing shipments in Canada fell 0.3% (MoM) in February, compared to 1.3% decline in previous month.
In the Asian session, at GMT0300, the pair is trading at 0.9889, with the USD trading 0.04% lower from yesterday’s close.
The pair is expected to find support at 0.9832, and a fall through could take it to the next support level of 0.9775. The pair is expected to find its first resistance at 0.9979, and a rise through could take it to the next resistance level of 1.0069.
The Bank of Canada (BoC) monetary policy report is likely to receive increased market attention today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
