USDCAD Movement
For the 24 hours to 23:00 GMT, the USD marginally declined against the CAD to close at 1.3074.
In economic news, Canada’s RBC manufacturing PMI edged lower to a level of 52.1 in May, from a 16-month high reading of 52.2 recorded in the previous month.
Separately, the Organisation for Economic Co-operation and Development (OECD), downgraded Canada’s GDP forecast to 1.7% this year and to 2.2% in 2017, compared to its November estimate of 2.0% growth in 2016 and 2.3% in 2017. The organisation further added that Canada’s resource sector has been contracting but says the pace of decline will slowdown and that activity in other parts of the economy will “gain traction”.
In the Asian session, at GMT0300, the pair is trading at 1.3072, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.3034, and a fall through could take it to the next support level of 1.2996. The pair is expected to find its first resistance at 1.3116, and a rise through could take it to the next resistance level of 1.3160.
With no economic releases in Canada today, investors will look forward to the nation’s international merchandise trade data for April, scheduled to release tomorrow.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
