USDCAD Movement
On Friday, the USD rose 0.15% against the CAD to close at 1.0339, ahead of Fed’s policy decision on September 18. However, the gains were kept in check after data showed that the US retail sales came in below market expectation for the month of August. The US dollar also faced some resistance from news that the White House denied Nikkei newspaper’s report that the US President was set to nominate Lawrence Summers as the next head of the Fed.
Meanwhile, in Canada, a report depicted that the nation’s capacity utilization fell 80.6% during the second quarter, at par with market expectation and following a 80.8% rise seen in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 1.0306, with the USD trading 0.32% lower from Friday’s close.
The pair is expected to find support at 1.0289, and a fall through could take it to the next support level of 1.0271. 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 1.0365.
Investors await the release of portfolio investment data from Canada, later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
