USD/CAD: Loonie Gained Despite Weak Canadian Economic Data

USD/CAD: Loonie Gained Despite Weak Canadian Economic Data

For the 24 hours to 23:00 GMT, the USD declined 0.45% against the CAD to close at 0.9833.

On the Canadian economic front, building permits slipped 17.9% (MoM) in the November, compared to a revised 15.9% rise recorded in the previous month. However, the new-house price index climbed 0.1% annually in November, compared to a 0.2% rise in October.

Separately, the Bank of Canada Senior Deputy Governor, Tiff Macklem stated that while growth in the economy is slower than policy makers had expected, expansion would accelerate this year. He also indicated that housing activity is beginning to decline broadly in line with the bank’s expectations.

In the Asian session, at GMT0400, the pair is trading at 0.9833, with the USD trading marginally lower from yesterday’s close.

The pair is expected to find support at 0.9817, and a fall through could take it to the next support level of 0.9801. The pair is expected to find its first resistance at 0.9860, and a rise through could take it to the next resistance level of 0.9888.

Trading trends in the pair today are expected to be determined by the release of international merchandise trade data in Canada.