USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.72% against the CAD and closed at 1.3054.
On the data front, Canada’s gross domestic product (GDP) dropped more-than-expected by 0.6% on a monthly basis in May, contracting at the fastest pace in more than seven years as wildfires in northern Alberta caused a sharp decline in oil production. Markets expected the GDP to fall by 0.5%, after recording a rise of 0.1% in the previous month. Meanwhile, on an annual basis, the GDP rose by 1.0%, lower than market expectations for an advance of 1.2% and following a rise of 1.5% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.3041, with the USD trading 0.1% lower against the CAD from Friday’s close.
The pair is expected to find support at 1.2964, and a fall through could take it to the next support level of 1.2888. The pair is expected to find its first resistance at 1.3151, and a rise through could take it to the next resistance level of 1.3262.
Going forward, investors await the release of Canada’s RBC manufacturing PMI data for July, due to release tomorrow.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
