USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.24% against the CAD and closed at 1.3195.
The Canadian Dollar gained ground, after Canada’s building permits unexpectedly surged 8.7% on a monthly basis in October, defying market expectations for a drop of 0.7% and following a revised decline of 4.6% in the previous month. Further, the nation’s new housing price index rose 0.4% MoM in October, more than market expectations for a rise of 0.2% and after registering a gain of 0.2% in the prior month. On the other hand, the nation’s seasonally adjusted housing starts eased more-than-expected to a level of 184.0K, compared to a revised reading of 192.3K in the preceding month, while investors had envisaged housing starts to drop to a level of 191.0K.
In the Asian session, at GMT0400, the pair is trading at 1.3200, with the USD trading marginally higher against the CAD from yesterday’s close.
The pair is expected to find support at 1.3170, and a fall through could take it to the next support level of 1.3140. The pair is expected to find its first resistance at 1.3240, and a rise through could take it to the next resistance level of 1.3280.
Next week, market participants will keep a close eye on a speech by BoC Governor, Stephen Poloz, coupled with Canada’s existing home sales data.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
