USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.32% against the CAD to close at 1.1061, as a soft New York Empire State manufacturing index report and concerns on the economic repercussion of an earthquake in Los Angeles weighed on the demand of the greenback. However, a strong US industrial production data kept the US Dollar’s losses in check.
The Canadian Dollar gained ground after the existing home sales in Canada rebounded in February. Data revealed that existing home sales in Canada rose 0.3% (MoM) in February, from a 3.3% drop in the previous month.
Separately, the Statistics Canada reported that Canadian portfolio investment in foreign securities amounted to C$2.34 billion in January, following C$3.88 billion of investment in the previous month. Meanwhile, foreign portfolio investment in Canadian securities stood at C$1.09 billion in January, compared to an outflow of C$4.28 billion in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.1055, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.1030, and a fall through could take it to the next support level of 1.1004. The pair is expected to find its first resistance at 1.1093, and a rise through could take it to the next resistance level of 1.1130.
Traders keenly await the Bank of Canada (BoC) Governor, Stephen Poloz’s speech, scheduled to commence later today. Also later today, traders would eye Canada’s manufacturing shipment data, which is expected to register an improvement in the month of January.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
