USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.65% against the CAD to close at 0.9849. The Canadian Dollar weakened, as risk aversion increased following a weak data on the US labor sector, and after potential downgrade of Canada’s economic outlook by the country’s Finance Minister.
The Canadian Finance Minister, Jim Flaherty stated that “slowing growth is now a reality” and cautioned that Canada’s economic outlook may be downgraded during an event in Ottawa when it releases its mid-year budget update.
Meanwhile, wholesales sales in Canada rose 0.5% (MoM) to C$49.67 billion ($50.78 billion) in August, compared to a revised 0.7% drop recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 0.9854, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 0.9792, and a fall through could take it to the next support level of 0.9731. The pair is expected to find its first resistance at 0.9887, and a rise through could take it to the next resistance level of 0.9921.
Trading trends in the pair today are expected to be determined by the release of the consumer price index in Canada.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
