USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.38% against the CAD to close at 1.0420. The Canadian Dollar continued to face pressure after the Bank of Canada on Wednesday lowered its growth forecast for the country. The central bank also dropped language about the need for future interest-rate rises that had been in place for more than a year, as risks of a worsening economy increased. Traders also attributed the weakness in the Canadian Dollar to the reduced demand for high yield currencies amid negative news flows from China’s money market.
In the Asian session, at GMT0300, the pair is trading at 1.0417, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.0374, and a fall through could take it to the next support level of 1.0332. The pair is expected to find its first resistance at 1.0449, and a rise through could take it to the next resistance level of 1.0482.
With no major economic releases from Canada, traders are expected to monitor global economic news for additional cues in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
