USDCAD Movement
On Friday, the USD rose 0.07% against the CAD to close at 1.0847, as the Canadian Dollar lost ground after data showed that growth in the Canadian economy contracted more-than-expected 1.2% in the first quarter of 2014, the slowest pace of quarterly growth since the fourth quarter of 2012. Adding to the negative sentiment, Canada’s industrial product prices unexpectedly fell 0.2% on a month-on-month basis while raw materials prices rose less-than-expected 0.1% (MoM) in April.
In the Asian session, at GMT0300, the pair is trading at 1.0852, with the USD trading marginally higher from Friday’s close.
The pair is expected to find support at 1.0825, and a fall through could take it to the next support level of 1.0797. The pair is expected to find its first resistance at 1.0875, and a rise through could take it to the next resistance level of 1.0897.
Amid lack of major economic releases from Canada, later today, market participants would eye global economic news for further guidance in the currency pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
