Loonie Trading On A Stronger Footing This Morning
GCI Financial | Oct 21, 2014 01:42AM ET
For the 24 hours to 23:00 GMT, the USD traded a tad lower against the CAD to close at 1.1289.
On the macro front, Canada’s wholesale sales unexpectedly advanced 0.2% on a monthly basis in August, compared to a drop of 0.2% registered in the previous month. Markets were expecting it to fall 0.3% in August.
Yesterday, Moody’s, leading rating agency indicated in its annual report on Canada that the federal government’s AAA rating and “stable” outlook were supported by its improving finances, the nation’s “relatively upbeat economic performance,” and its strong institutional and regulatory framework. However, it cautioned that the inflated housing market and high consumer debt could threaten the economic health of the nation.
In the Asian session, at GMT0300, the pair is trading at 1.1282, with the USD trading 0.06% lower from yesterday’s close.
The pair is expected to find support at 1.1254, and a fall through could take it to the next support level of 1.1226. The pair is expected to find its first resistance at 1.1304, and a rise through could take it to the next resistance level of 1.1326.
Amid no economic releases from Canada today, investors await the BoC’s interest rate decision, scheduled tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
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