USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.44% against the CAD to close at 1.0303. The Canadian Dollar gained traction after nation’s current account deficit fell to C$14.09 billion in the first quarter of 2013 (Q12013), from a revised deficit of C$14.63 billion recorded in the previous quarter. Separately, the industrial product prices dropped more-than-expected by 0.8% (MoM) in April, while raw material prices declined by 2.2% in the same month.
In the Asian session, at GMT0300, the pair is trading at 1.0307, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 1.0269, and a fall through could take it to the next support level of 1.0230. The pair is expected to find its first resistance at 1.0368, and a rise through could take it to the next resistance level of 1.0428.
Canadian gross domestic product data scheduled to be released later today would provide insights on whether the Bank of Canada should increase its interest rates in the next policy meeting.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
