USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.27% against the CAD to close at 1.0473. The Canadian Dollar gave up ground against its US counterpart after the Bank of Canada (BoC) Governor, Stephen Poloz, stated that he would extend a three-year pause in the central bank’s long-awaited plan for an interest-rate hike. Governor’s comments were in line with BoC’s last week’s policy statement, which dropped the language for future rate hikes, stating that a soft economy and persistently weak inflation mean there is as much chance of a rate cut as a rate hike.
However, losses in the loonie were capped after BoC Deputy Governor, Agathe Cote, expressed optimism on the nation’s economic growth, saying that Canada’s economy should slowly gain momentum in the coming years on the back of growing foreign demand, which should benefit the export sector and lead to higher productivity growth.
On the economic front, industrial product price in Canada declined 0.3% (MoM) in September, more than analysts’ call for a 0.2% drop and compared to a 0.3% rise seen in the month of August. Separately, Canada’s raw material price index fell more-than-expected 1.5% in September, following previous month’s 0.9% rise.
In the Asian session, at GMT0400, the pair is trading at 1.0462, with the USD trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 1.0434, and a fall through could take it to the next support level of 1.0405. The pair is expected to find its first resistance at 1.0483, and a rise through could take it to the next resistance level of 1.0503.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
