USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.55% against the CAD to close at 1.0324.
Disappointing Ivey PMI data in Canada weighed on the performance of the domestic currency in yesterday’s session, adding to evidence that the economy is struggling to accelerate early in 2013.
The Canadian Dollar was further pressured after the Bank of Canada (BoC) left interest rate unchanged and softened its stance over tighter policy for the second time in a row. The central bank indicated that with continued slack in the Canadian economy and muted inflation outlook, the current monetary stimulus would remain in place for an unspecified period of time.
In the Asian session, at GMT0400, the pair is trading at 1.0317, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.0269, and a fall through could take it to the next support level of 1.0220. The pair is expected to find its first resistance at 1.0352, and a rise through could take it to the next resistance level of 1.0386.
Later today, the building permit report could further accentuate the “risk-off” mood for the Loonie trader in case the data misses market expectations, as last two months reading have put a serious damper on the Canadian housing market. However, market expectations are for a 5.0% rise in the value of building permits for December, which may provide some relief to the investors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
