USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.13% against the CAD to close at 1.1109, as traders reduced their positions in the greenback following the release of a disappointing manufacturing PMI data from the US.
Meanwhile, the Canadian Dollar gained ground against the USD after data revealed that the industrial product price in Canada rose 0.7% (MoM) in December, more than analysts estimate for a 0.3% rise and compared to a 0.2% (MoM) increase witnessed in the previous month. Another report showed that the raw material price index in Canada rose 1.9% in December, less than market expectations and following a 4.2% drop in November.
Yesterday, the International Monetary Fund (IMF) predicted that the Canadian economy would grow 2.25% this year, accelerating from an estimated 1.75% in 2013.
In the Asian session, at GMT0400, the pair is trading at 1.1083, with the USD trading 0.23% lower from yesterday’s close.
The pair is expected to find support at 1.1037, and a fall through could take it to the next support level of 1.0991. The pair is expected to find its first resistance at 1.1132, and a rise through could take it to the next resistance level of 1.1181.
Market participants would monitor global economic news for further cues in the pair amid a lack of economic releases from Canada.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
