USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.26% against the CAD to close at 1.0650. The Canadian Dollar gained ground against the greenback after an official report revealed that building permits in Canada surged 7.4% (MoM) in October, far above analysts’ expectations for a 1.0% gain and compared to previous month’s rise of 4.1%. Positive sentiment was also fuelled after prices of crude oil, Canada’s biggest export, rose for a fifth-day yesterday. However, gains in the loonie were capped after the Ivey purchasing managers index, on a seasonally adjusted basis, declined more-than-expected to a reading of 53.7 in November, from a level of 62.8 registered in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 1.0657, with the USD trading 0.07% higher from yesterday’s close.
The pair is expected to find support at 1.0620, and a fall through could take it to the next support level of 1.0584. The pair is expected to find its first resistance at 1.0697, and a rise through could take it to the next resistance level of 1.0738.
Later today, the Statistics Canada is scheduled to release a report on Canada’s unemployment rate, which is widely expected to remain unchanged at previous month’s level of 6.9%.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
