For the 24 hours to 23:00 GMT, the USD rose 1.20% against the CAD to close at 1.1104. The Canadian Dollar declined against its US counterpart, the most in four years, after the Bank of Canada (BoC) kept its benchmark interest rate unchanged at 1.0% and indicated that a strength in the Loonie pose a challenge to the nation’s exports. Additionally, the BoC Governor, Stephen Poloz, projected inflation in the nation to remain low for another couple of years, adding that, “the timing and direction of the next change in the policy rate would depend on how new information influences this balance of risks.”
In the Asian session, at GMT0400, the pair is trading at 1.1146, with the USD trading 0.38% higher from yesterday’s close.
The pair is expected to find support at 1.1012, and a fall through could take it to the next support level of 1.0878. The pair is expected to find its first resistance at 1.1219, and a rise through could take it to the next resistance level of 1.1292.
Traders are likely to keenly await the Statistics Canada’s retail sales data, slated for release later today, for further cues in the Loonie.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
