USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.69% against the CAD to close at 1.0307. The Loonie declined as disappointing US fourth quarter GDP overshadowed reports that Canada’s current account deficit narrowed in the Q42012 on stronger exports of energy and food products.
Canada’s current account deficit narrowed to C$17.3 billion in the Q42012 from a deficit of C$18.9 billion recorded in the previous quarter.
Meanwhile, the raw material price index (RMPI) rose 3.8% in January, from a decline of 2.0% recorded in the previous month. The industrial product price index (IPPI) remained flat in January, lower than the market expectation of a 0.3% rise.
In the Asian session, at GMT0400, the pair is trading at 1.0297, with the USD trading 0.10% lower from yesterday’s close.
The pair is expected to find support at 1.0236, and a fall through could take it to the next support level of 1.0176. The pair is expected to find its first resistance at 1.0336, and a rise through could take it to the next resistance level of 1.0376.
Investors speculated that after slower-than-forecast growth data released yesterday in the US, Canada’s largest trading partner, the Canadian GDP data scheduled to be released today would offer tepid growth on an annualized basis in the Q42012.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
