USDCAD Movement
For the 24 hours to 23:00 GMT, USD rose 0.34% against the CAD to close at 0.9600.
Canadian dollar weakened against the greenback, after the US Federal Reserve Chairman, Ben Bernanke’s statement on the monetary policy dampened hopes that he would offer additional monetary stimulus.
Fed Chairman Ben Bernanke reiterated that the US central bank would be ready to inject more money into the system, in case the US economy worsen, but stressed that inflation was higher
At present than it was late last year, so the Fed was not ready yet to take action.
In the US, the initial jobless claims fell to 405,000, for the week ended 9 July 2011, lowest level since mid-April 2011, compared to the previous week’s revised figure of 427,000. Additionally, for the week ended 2 July 2011, continuing claims fell to 3.727 million, compared to the preceding week’s revised level of 3.712 million.
In the Asian session at 3:00GMT, the pair is trading at 0.9597, flat from yesterday’s close at 23:00 GMT.
The first area of short term resistance is observed at 0.9626, followed by 0.9656 and 0.9724. The first area of support is at 0.9558, with the subsequent supports at 0.9520 and 0.9452.
Trading trends in the pair today are expected to be determined by release of data on manufacturing shipments in Canada.
The currency pair is showing convergence with its 20 Hr and its 50 Hr moving averages.
