USDCAD Movement
For the 24 hours to 23:00 GMT, USD declined 0.93% against the CAD to close at 0.9675, after the Bank of Canada surprised investors with some hawkish comments in its policy statement. The Bank of Canada, left its interest rates unchanged at 1% and stated that some of the considerable monetary policy stimulus will be eventually withdrawn.
In Canada, the raw material price index rose by 6.8% in April, following a 5.8% rise in the previous month. The industrial product price index, on a monthly basis, increased 0.5% in April, following a 0.9% rise recorded in the previous month.
In the Asian session at 3:00GMT, the pair is trading at 0.9684, 0.09% higher from yesterday’s close at 23:00GMT.
The first area of short term resistance is observed at 0.9735, followed by 0.9787 and 0.9881. The first area of support is at 0.9641, with the subsequent supports at 0.9599 and 0.9505.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
