USD/CAD: Loonie Trading Higher After Yesterday's Fall

USD/CAD: Loonie Trading Higher After Yesterday's Fall

For the 24 hours to 23:00 GMT, the USD rose 0.38% against the CAD to close at 1.0004.

In Canada, trade deficit narrowed to C$0.83 billion in September, marking its sixth consecutive monthly trade deficit and following a revised deficit of C$1.52 billion recorded in August. Additionally, housing starts declined to an annualized rate of 204,107 units in October, from a revised 223,995 in September. Meanwhile, the new housing price index remained steady at 2.4% (YoY) in September, following a similar increase in August.

Separately, the Bank of Canada Governor, Mark Carney stated that the “fiscal cliff” of potentially damaging US tax hikes and spending cuts is the biggest issue, currently the Canadian economy is facing.

In the Asian session, at GMT0400, the pair is trading at 0.9994, with the USD trading 0.10% lower from yesterday's close.

The pair is expected to find support at 0.9958, and a fall through could take it to the next support level of 0.9922. The pair is expected to find its first resistance at 1.0020, and a rise through could take it to the next resistance level of 1.0045.