USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.28% against the CAD to close at 1.0662. The Canadian Dollar gave up ground against the US Dollar after Canada’s Finance Minister, Jim Flaherty, stated that recent weakness in the loonie was good for the country’s factories and warned that the Bank of Canada could undertake measure to further weaken the nation’s currency. Mr. Jim Flaherty also projected the nation to post a bigger budget surplus than forecast in fiscal year 2015-2016.
On the economic front, Canada’s raw material price index dropped more-than-expected 4.1% (MoM) in November, after recording a fall of 2.3% in the previous month. Industrial product prices in Canada rose 0.1% (MoM) in November, defying analysts’ call for the prices to remain unchanged at previous month’s level of -0.3%
In the Asian session, at GMT0400, the pair is trading at 1.0675, with the USD trading 0.12% higher from yesterday’s close.
The pair is expected to find support at 1.0628, and a fall through could take it to the next support level of 1.0581. The pair is expected to find its first resistance at 1.0702, and a rise through could take it to the next resistance level of 1.0729.
Traders keenly await Canada’s merchandised trade balance and Ivey purchasing managers index data, scheduled for release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
