USDCAD Range Trading Ahead Of Bank Of Canada Rate Decision
USDCAD trades 0.02% higher at 1.3066 in quiet trading session as the US markets are closed today for the Martin Luther King day. US Dollar is stronger across the major pairs today helped by better economic data released the previous week. The housing starts increased to an annualized rate of 1.6 million units for December showing that the housing market remains in good shape. The industrial production dropped 0.3% in December, below the market expectations. The University of Michigan’s consumer sentiment came in at 99.1 above the analyst’s forecast.
The crude oil price today heading north after two oil facilities stop production in Libya helping the Canadian Loonie.
Bank Of Canada Expected to Keep Rates Unchanged
Investors await the Bank Of Canada decision and the comments on the state of the economy for fresh clues on the next moves by the central bank. Analysts expect a rate cut of 25 basis point in the second quarter of 2020.
BAC in its latest policy meeting kept it’s interest rates steady as expected by economists.
USDCAD rebound from the December lows at 1.2956 continues amid stronger economic data out of the USA and a pullback in crude oil prices. The technical analysis outlook is still bearish as the pair trades below the significant daily moving averages.
On the upside immediate resistance for USDCAD stands at 1.3070 the daily top. Next resistance level will be met at 1.3104 the high from January 9th. Next level to watch is the 1.3119 high from December 27th. What can cancel the bearish momentum is a move above the 50-day moving average at 1.3161.
On the downside, initial support for USDCAD stands at 1.3054 the daily low. If the USDCAD pair breaks below that support area the next target to the downside is at 1.2956 the low from January 7th.