USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.12% against the CAD to close at 0.9878, as overall market sentiment remained cautious amid uncertainty over the ongoing US debate about raising the debt ceiling.
On the economic front, the Canada Mortgage and Housing Corporation reported that the seasonally adjusted annual rate of housing starts fell to 198,000 units in December from 201,400 units in November, whose figure was revised up from a previously reported 196,100 units. Market participants had expected Canadian housing starts to dip to 195,000 units in December. In the Asian session, at GMT0400, the pair is trading at 0.9869, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 0.9856, and a fall through could take it to the next support level of 0.9843. The pair is expected to find its first resistance at 0.9881, and a rise through could take it to the next resistance level of 0.9894.
Trading trends in the pair today are expected to be determined by the release of the building permits and the new housing price index data in Canada.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
