USDCAD Movement
On Friday, the USD rose 0.17% against the CAD to close at 1.1122.
The Canadian Dollar lost ground against its US counterpart after data showed that retail sales in Canada declined 1.8% (MoM) in December, more than analysts’ call for a 0.4% drop and compared to a 0.5% increase registered in the preceding month. However, the losses were limited after another report indicated that the annual consumer inflation rate in Canada rose to 1.5% in January, more than market expectations for a rise to 1.3%, from the previous month’s level of 1.2%.
Separately, Canadian Finance Minister Jim Flaherty, at the G20 summit, projected the Canadian economy to outperform its 2% growth target over the next five years.
In the Asian session, at GMT0400, the pair is trading at 1.1115, with the USD trading 0.06% lower from Friday’s close.
The pair is expected to find support at 1.1078, and a fall through could take it to the next support level of 1.1042. The pair is expected to find its first resistance at 1.1174, and a rise through could take it to the next resistance level of 1.1234.
Market participants are expected to keep a close tab on global economic news for further guidance in the pair, amid lack of economic data from Canada.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
