Forex - USD/CAD hits session highs after Canadian data

Published 08/07/2013, 09:31 AM
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Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Wednesday after official data showed that number of new building permits issued in Canada fell the first time in six months in June.

USD/CAD hit 1.0445 during early U.S. trade, the pair’s highest since July 11; the pair subsequently consolidated at 1.0427, gaining 0.50%.

The pair was likely to find support at 1.0366, the session low and resistance at 1.0470, the high of July 11.

Statistic Canada said the number of new building permits issued tumbled by a seasonally adjusted 10.3% in June, disappointing expectations for a 3% decline.

May’s figure was revised to a gain of 5.8% from a previously reported increase of 4.5%.  

Canada was to release a report on the Ivey PMI later in the session.
 
Meanwhile, uncertainty over how soon the Federal Reserve will begin to unwind its USD85 billion-a-month stimulus program persisted following comments by senior Fed officials on Tuesday.

Chicago Federal Reserve Bank Chairman Charles Evans said he would not rule out the withdrawal of stimulus measures at the bank’s September meeting, echoing remarks by Dennis Lockhart, president of the Atlanta Fed earlier Tuesday.

The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.53% to 1.3877.

In the euro zone, official data release Wednesday showed that German industrial production jumped 2.4% in June, easily surpassing expectations for a 0.3% increase.

The report came one day after stronger-than-forecast German factory orders data reinforced expectations that the euro zone economy is starting to recover.



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