USDCAD Movement
On Friday, the USD marginally declined against the CAD to close at 1.0672. However, the US Dollar capped its losses, following a report that showed the final US gross domestic product (GDP) unexpectedly accelerated in the third quarter.
In Canada, the annual inflation rate rose 0.9% from 0.7% in October but remained below the central bank’s target range, ensuring that weak inflation would remain on policy makers’ radar as a top concern. Additionally, the retail sales in Canada fell 0.1% in October, compared to a 1.0% increase recorded in the previous month. Markets had expected retail sales to rise 0.2% in October.
In the Asian session, at GMT0400, the pair is trading at 1.0638, with the USD trading 0.32% lower from Friday’s close.
The pair is expected to find support at 1.0602, and a fall through could take it to the next support level of 1.0567. The pair is expected to find its first resistance at 1.0706, and a rise through could take it to the next resistance level of 1.0775.
Going forward, the crucial GDP data from Canada would influence the trading trends in the pair today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
