USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.16% against the CAD to close at 1.0293, as weak employment data from the US dimmed prospects for a near term tapering of asset buying by the US Federal Reserve.
However, the Canadian Dollar’s gains were capped after a report showed that the pace of retail sales in Canada slowed in August compared to the previous month as demand softened for new cars and receipts from gas stations fell. Statistics Canada reported that retail sale rose 0.2% (MoM) in August, less than market expectation for a 0.3% rise and compared to a 0.5% increase witnesses in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.0290, with the USD trading slightly lower 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 1.0248. The pair is expected to find its first resistance at 1.0310, and a rise through could take it to the next resistance level of 1.0330.
Investors are awaiting the Bank of Canada’s (BoC) interest rate decision, later today, for determining further direction in the Loonie, with market participants expecting the BoC to maintain its benchmark interest rate at 1.0%.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
