USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.16% against the CAD to close at 1.0740.
Yesterday, the Bank of Canada in its monthly monetary policy meeting held its benchmark interest rate steady at 1%. The central bank noted that the economic growth in the nation has not been up to the mark and could return to normalcy by the mid-2016. Furthermore, the central bank dismissed the recent increase in inflation as temporary and warned that the nation could not recover on its own without the BoC’s help.
Other data revealed that the Canadian manufacturing sales registered its strongest gain in almost a year and climbed 1.6% in May, surpassing market expectations of a 1.0% rise and reversing previous month’s 0.2% decline.
In the Asian session, at GMT0300, the pair is trading at 1.0739, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.0709, and a fall through could take it to the next support level of 1.068. The pair is expected to find its first resistance at 1.0782, and a rise through could take it to the next resistance level of 1.0826.
Amid lack of any major releases from Canada later in the day, traders are expected to shift their focus to consumer prices data, scheduled to release tomorrow.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
