USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.18% against the CAD to close at 1.0470. The Canadian Dollar came under pressure after the Bank of Canada (BoC) Deputy Governor, John Murray, in the central bank’s quarterly review report, indicated that the BoC does not necessarily need to raise interest rates to “normal” levels even if the economy is running at full speed and inflation is close to the target level.
On the economic front, Canada’s international merchandise trade deficit narrowed to a reading of $0.44 billion in September. Market participants had expected the trade deficit to narrow to $1.00 billion from $1.09 billion registered in August. Separately, Canada’s new housing price index rose 1.6% (YoY) in September, compared to a 1.8% (YoY) rise recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0466, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.0442, and a fall through could take it to the next support level of 1.0417. The pair is expected to find its first resistance at 1.0509, and a rise through could take it to the next resistance level of 1.0551.
Later today, the Statistics Canada is scheduled to release a report on the nation’s manufacturing shipments during September.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
