Forex - USD/CAD pulls further away from 11-year peak
Investing.com
Published Aug 26, 2015 09:28AM ET
Greenback moves lower vs. loonie despite upbeat U.S. data
Investing.com - The U.S. dollar was lower against its Canadian counterpart on Wednesday, pulling away from the previous session's 11-year peak as investors continued to monitor developments in China.
USD/CAD hit 1.3252 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3294, sliding 0.32%.
The pair was likely to find support at 1.3143, Tuesday's low and resistance at 1.3355, Tuesday's high and an 11-year high.
The greenback was boosted after the People’s Bank of China cut interest rates by 25 basis points to 4.6% on Tuesday, in a bid to bolster economic growth after a plunge in the country’s stock market.
However, concerns over whether a free fall in China’s stocks will make the world’s second-largest economy weaker persisted. Shares in Shanghai opened higher on Wednesday, before ending down 1.3% in a volatile session.
Recent steep declines in Chinese equity markets have sparked fears that they will hasten an economic downturn and undermined investor confidence in the government’s ability to revitalize economic growth.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.
Markets shrugged off a report by the U.S. Commerce Department on Wednesday showing that total durable goods orders increased by 2.0% last month, compared to expectations for a decline of 0.4%.
Core durable goods orders, which exclude volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%.
The loonie was sharply higher against the euro, with EUR/CAD plummeting 1.59% to 1.5121.
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Written By: Investing.com
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