USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined marginally against the CAD to close at 1.0163. The Loonie registered gains after the latest inflation numbers showed the largest monthly increase in Canadian consumer prices in more than 20 years.
The consumer price index (CPI) in Canada advanced 1.2% annually in February, much higher than the expected 0.8% rise and following a 0.5% rise in the previous month. Meanwhile, on a seasonally adjusted monthly basis, the core CPI climbed 0.4% in February, as compared to a 0.1% rise in the previous month. Also, the Bank of Canada (BoC) reported that, on an annual basis, the core CPI rose 1.4% in February, compared to an increase of 1.0% recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0166, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.0144, and a fall through could take it to the next support level of 1.0123. The pair is expected to find its first resistance at 1.0192, and a rise through could take it to the next resistance level of 1.0219.
The release of Canadian GDP data ahead today could bring about some volatility in the domestic currency, with market expectations tilted on the upside.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
