USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 1.07% against the CAD to close at 1.0775. The Canadian Dollar gave up ground against its US counterpart, after Statistics Canada reported that Canada’s merchandised trade deficit unexpectedly widened to $0.94 billion in November, from a deficit of $0.91 billion registered in the previous month. Market had expected the merchandised trade deficit to narrow to $0.15 billion. Negative sentiment was also fuelled after a report revealed that, on a seasonally adjusted basis, Canada’s Ivey purchasing managers index declined to a reading of 46.3 in December, defying analysts’ expectations for the index to rise to 54.5, from a level of 53.7 recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0792, with the USD trading 0.16% higher from yesterday’s close.
The pair is expected to find support at 1.0706, and a fall through could take it to the next support level of 1.0621. The pair is expected to find its first resistance at 1.0838, and a rise through could take it to the next resistance level of 1.0885.
Investors are expected to eye global economic news for further guidance in the pair, amid absence of economic releases from Canada.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
