USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.12% against the CAD to close at 1.0245. The Canadian Dollar was bolstered as retail sales in Canada climbed 1.0% in January to C$38.9 billion, compared to a downwardly revised fall of 2.3% recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0242, with the USD trading marginally lower from yesterday’s close.
Earlier this morning, the Canadian Finance Minister, Jim Flaherty presented the budget to the House of Commons. He pledged to close tax loopholes and curb spending to erase its budget deficit till 2015, even as it committed funds to infrastructure, manufacturing and job training. He warned that the global economy remained “fragile” and Canada’s biggest trading partners, including the European Union and the United States, were among the worst affected.
The Finance Minister, however, was optimistic on the nation’s economy and indicated that growth would rebound next year, reaching stellar 2.5%.
The pair is expected to find support at 1.0207, and a fall through could take it to the next support level of 1.0173. The pair is expected to find its first resistance at 1.0268, and a rise through could take it to the next resistance level of 1.0295.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
