For the 24 hours to 23:00 GMT, the USD declined 1.33% against the CAD to close at 1.3246.
The Canadian dollar gained ground, after the Bank of Canada (BoC) kept benchmark interest rate steady at 0.5%, as widely expected. In a statement accompanying the decision, the central bank indicated that the global economy has progressed largely as it had projected in its January Policy Report. Further, the BoC highlighted that Canada’s inflation appears to be on track and that 2015 closed out with a better-than-expected growth. However, the central bank also expressed concerns that the nation’s financial vulnerabilities have crept higher and that the ongoing commodity-price slump has left the overall business investment in the country “very weak”.
In the Asian session, at GMT0400, the pair is trading at 1.3277, with the USD trading 0.23% higher from yesterday’s close.
The pair is expected to find support at 1.3188, and a fall through could take it to the next support level of 1.3098. The pair is expected to find its first resistance at 1.3407, and a rise through could take it to the next resistance level of 1.3537.
Going ahead, investors await Canada’s new housing price index data for January, scheduled to release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.