USD/CAD is consolidating as investors await Canada’s GDP numbers later in the day. The pair is down by 0.06% at 1.2625. December’s GDP came in at 0.1%. Investors expect a higher reading of 0.5%. Furthermore, US nonfarm job numbers are set to impact the pair. The forecasted rise by 550,000 is higher than the prior month’s 117,000.
Besides, with the Canadian dollar being one of the major commodity currencies, investors are eyeing the OPEC+ meeting scheduled for tomorrow. Analysts expect the alliance to extend its current production quotas as global oil demand remains unstable.
In its March meeting, the group’s decision came as a surprise as experts predicted that it will increase production. While the surprise element is likely not to define this month’s meeting, it will still support crude oil price and the Canadian dollar by extension. WTI futures are currently up by 0.74% at $61.
USD/CAD Technical Outlook
On a two-hour chart, USD/CAD is trading slightly above the 25 and 50-day exponential moving averages. The pair has been trading sideways for the second consecutive session. At its current price of 1.2625, the resistance and support levels are at 1.2650 and 1.2600 respectively.
USD/CAD is likely to consolidate in the first half of today’s session as investors await Canada’s GDP numbers later in the day. Depending on the outcome, the target to watch out for on the lower side is 1.2550. On the upper side, a move past 1.2650 will place the next target at 1.2700.
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USD/CAD Chart
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