USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 1.08% against the CAD to close at 1.0718, after the outcome of the Federal Open Market Committee (FOMC) meeting, wherein the Federal Reserve gave the green signal to start tapering, however at a modest rate from January 2014.
The Canadian Dollar extended its declines after the Bank of Canada (BoC) Governor, Stephen Poloz asserted that the Loonie’s recent weakness would not do much to help the nation’s exporters, and cited weakness in foreign and domestic demand as the reason why he surprised investors by dropping the bank’s bias to raise interest rates.
In the Asian session, at GMT0400, the pair is trading at 1.0724, with the USD trading 0.06% higher from yesterday’s close.
The pair is expected to find support at 1.0642, and a fall through could take it to the next support level of 1.0561. The pair is expected to find its first resistance at 1.0766, and a rise through could take it to the next resistance level of 1.0809.
With no economic releases from Canada scheduled today, investors would focus on key releases from the US.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
