USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.36% against the CAD to close at 1.0988. The Canadian Dollar gained ground against the US Dollar after data showed that building permits in Canada jumped 8.5% (MoM) in January, way above analysts’ expectations for a rise of 1.6% and compared to a 4.8% drop registered in the preceding month. Positive sentiment was also fuelled after another report revealed that, on a seasonally adjusted basis, the Ivey purchasing managers index in Canada advanced to a reading of 57.2 in February, contradicting analysts’ expectations for a fall to a figure of 52.9, from previous month’s level of 56.8.
Late Thursday, the Bank of Canada (BoC) Deputy Governor, John Murray attributed slackness in Canada’s economy to dismal inflation-outlook and business investment worldwide. Furthermore, he opined that the recent weakness in the loonie cannot be solely blamed on a dismal export sector recovery.
In the Asian session, at GMT0400, the pair is trading at 1.0997, with the USD trading 0.08% higher from yesterday’s close.
The pair is expected to find support at 1.0950, and a fall through could take it to the next support level of 1.0903. The pair is expected to find its first resistance at 1.1046, and a rise through could take it to the next resistance level of 1.1095.
Later today, the Statistics Canada is expected to publish Canada’s trade balance and employment data, which is widely expected to show an improvement in January and February, respectively.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
