The Canadian dollar is almost unchanged on Tuesday, as USD/CAD trades just above the 1.10 line in the North American session. On the release front, Canadian Wholesale Sales hit a four-month high. There was good news out of the US as well, as Existing Home Sales remained steady and the Richmond Manufacturing Index surged in March. As well, the House Price Index, a minor indicator, met expectations.
Canadian releases started the week on a positive note, as Wholesale Sales jumped 1.1% in March, beating the estimate of 0.7%. It marked the best showing by the important consumer spending indicator since last November. We'll get a look at the key event of the week on Wednesday, with the release of Core Retail Sales. Traders should keep a close look at this indicator, as an unexpected reading could affect the movement of USD/CAD.
US Existing Home Sales has been on a long downturn, reflecting trouble in the housing sector. The key indicator edged lower in March, dropping to 4.59 million, down from 4.60 million a month earlier. However, it did beat the estimate of 4.57 million, marking the first time that the indicator has beaten the forecast since August. New Home Sales will be released on Wednesday, with the markets expecting an improvement in March.
USD/CAD for Tuesday, April 22, 2014
- USD/CAD April 22 at 14:30 GMT
- USD/CAD 1.1022 H: 1.1024 L: 1.0967
USD/CAD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.0852 | 1.0906 | 1.1000 | 1.1094 | 1.1177 | 1.1319 |
- USD/CAD is showing little movement in Tuesday trading.
- On the downside, the key line of 1.1000 is under strong pressure. Will the pair dip into 1.09 territory? There is stronger support at 1.0906, which is protecting the 1.09 level.
- 1.1094 is the next resistance line. This is followed by 1.1177.
- Current range: 1.1000 to 1.1094
Further levels in both directions:
- Below: 1.1000, 1.0906, 1.0852, 1.0775 and 1.0706
- Above: 1.1094, 1.1177, 1.1319 and 1.1496
OANDA's Open Positions Ratio
USD/CAD ratio is almost evenly split, indicating a lack of bias as to what direction the pair will take.
The Canadian dollar continues to trade close to the 1.10 line. The pair has edged higher in the North American session.
USD/CAD Fundamentals
- 12:30 Canadian Wholesale Sales. Estimate 0.7%. Actual 1.1%.
- 13:04 US HPI. Estimate 0.6%. Actual 0.6%.
- 13:59 US Richmond Manufacturing Index. Estimate 0 points. Actual 7 points.
- 14:00 US Existing Home Sales. Estimate 4.57M. Actual 4.59M.
*Key releases are highlighted in bold
*All release times are GMT
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