USDCAD Movement
For the 24 hours to 23:00 GMT, USD rose 0.16% against the CAD to close at 0.9647, after China’s interest rate hike reduced the demand for high yielding assets.
In the US, the mortgage application volume, on a seasonally adjusted basis, declined by 5.2% from one week earlier. The Institute for Supply Management reported that its non-manufacturing index fell to 53.3 in June, following a reading of 54.6 posted in May.
In Canada, the building permits rose by 20.9% (M-o-M) in May from 21.5% decline in April.
In the Asian session at 3:00GMT, the pair is trading at 0.9649, marginally higher from yesterday’s close at 23:00 GMT.
The first area of short term resistance is observed at 0.9691, followed by 0.9733 and 0.9813. The first area of support is at 0.9611, with the subsequent supports at 0.9573 and 0.9493.
The pair is expected to trade on the cues from the release of new housing price index and Ivey Purchasing Managers Index in Canada.
The currency pair is trading between its 20 Hr and its 50 Hr moving averges.
