USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.20% against the CAD to close at 1.0846. The Canadian Dollar gave up ground against the US Dollar as the latest batch of dismal economic releases from Canada spurred fresh speculations for an interest-rate cut by the central bank of Canada.
In Canada, on a seasonally adjusted basis, housing starts fell to an annual rate of 189,700 in December, more than market expectations for a decline to 190,000 from previous month’s level of 197,800. Likewise, building permits in the nation also dropped more-than-expected 6.7% (MoM) in November, compared to an 8.0% rise registered in the preceding month. Separately, the nation’s new housing price index advanced 1.4% (YoY) in November, following a 1.5% rise witnessed in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0846, with the USD trading flat from yesterday’s close.
The pair is expected to find support at 1.0819, and a fall through could take it to the next support level of 1.0791. The pair is expected to find its first resistance at 1.0875, and a rise through could take it to the next resistance level of 1.0903.
Market participants keenly await Canada’s employment data, due for release later today, which is widely expected to show that unemployment in the nation remained unchanged at previous month’s level of 6.9% in December.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
