USDCAD rebounds today from seven-month lows as the selling pressure on USD eased after better than expected initial jobless claims data. The U.S. Initial Jobless Claims registered in at 1186K below the expectations of 1415K in the week ending July 31. Initial Jobless Claims 4-week average came down to 1337.75K on July 31 from the previous 1368.5K. The Continuing Jobless Claims in U.S. came in at 16.107M below the estimates of 16.72M on July 24.
Yesterday, released that Canada’s trade deficit rose to $3.19 billion in June from $1.33 billion in May. Canada’s Exports came in at $39.71B topping the expectations of $38.8B in June, while the Imports came at $42.9B also above the estimates of $41.3B. Canada’s economy is running faster than the USA economy in the recovery race after the coronavirus lockdown. Canada Gross Domestic Product (GDP) came in at 4.5%, above the estimates of 3.5% in May.
The Canadian Loonie continues to get support from the rally in crude oil prices. Today the WTI crude oil futures are 0.43% higher at $42.31 while the Brent crude oil price is 0.74% higher at $45.51.
USDCAD Daily Technical Analysis
The USDCAD is 0.17% higher at 1.3288 hovering close to seven-month highs as the USD attracted some bids today after the better than expected jobless claims. Bears are in control of the pair, and the rebounds are still a selling opportunity.
Immediate resistance for the pair is at 1.3323 the daily highs. More selling pressure should be met at 1.3417. What can invalidate the bearish momentum is a break above the 50-day moving average at 1.3512.
On the other hand, support for USDCAD is at 1.3243 today’s low. Next support area would be met at 1.3199 the low from February 21. More bids would emerge at 1.3038 the low from January 22.
USDCAD Daily Chart