USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.18% against the CAD to close at 1.2876.
The Canadian Dollar lost ground after the Bank of Canada (BoC) expressed concerns about Canada’s economic growth while announcing its decision to hold the benchmark interest rate steady at 0.50%. The BoC Governor, Stephen Poloz, stated that the underlying economic conditions do not warrant a policy change at this time, highlighting the disappointing performance of the nation’s export sector in the second quarter. Further, he indicated that while Canada’s economy shrank during the second quarter, it is expected to post a substantial rebound during the latter part of this year.
In other economic news, Canada’s seasonally adjusted Ivey purchasing managers’ index dropped more-than-anticipated to a level of 52.3 in August, from a reading of 57.0 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2864, with the USD trading 0.09% lower against the CAD from yesterday’s close.
The pair is expected to find support at 1.2817, and a fall through could take it to the next support level of 1.2770. The pair is expected to find its first resistance at 1.2912, and a rise through could take it to the next resistance level of 1.2960.
Going ahead, market participants will look forward to Canada’s building permits and new housing price index data, both for the month of July, scheduled to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
