USDCAD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0% | 0.2 Pips |  |
||
| Week to-date | 0.08% | 10.9 Pips |  |
||
| January | 0.32% | 46.2 Pips | |
||
Upcoming key events (London Time)
Wed 02:45 PM CAD Bank of Canada Policy Interest Rate
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate) Thu 01:30 PM USD GDP annual rate
What happened lately
In the United States, recent economic data reveals a mixed picture, particularly in the housing and durable goods sectors. The U.S. House Price Index for November experienced a decline, dropping to 0.3% from a prior revised rate of 0.5% in October, according to the Federal Housing Finance Agency. This suggests a cooling in the housing market as price growth slows. On the durable goods front, new orders decreased sharply by 2.2% in December, compared to a revised -1.2% in November as per the Census Bureau. This marks a significant downturn in durable goods, indicating potential weaknesses in business investments and manufacturing orders, except for specific segments like nondefense and transportation, which showed modest increases.
However, durable goods orders excluding transportation saw a slight increase of 0.3% in December from a revised -0.2% in November. The data for nondefense capital goods orders, excluding aircraft, also displayed a decline to 0.5% in December from a revised 0.9%. Meanwhile, U.S. new-home sales grew by 3.6% in December, though this was a reduction in the growth rate compared to November’s 5.9% gain.
Looking at the USDCAD currency pair, the recent drop of 0% to 1.43960 signifies a state of consolidation. Economic data reflecting a slowdown in parts of the U.S. economy can create uncertainties around the dollar, leading to fewer fluctuations in the currency pair. Furthermore, with the upcoming high-impact events such as the Bank of Canada’s policy interest rate decision and the U.S. Federal Reserve’s interest rate decision followed by the GDP annual rate, there are potential triggers for volatility in the currency market. Traders might remain cautious, anticipating possible shifts in monetary policies or economic outlook that consequent impact the USDCAD movement.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Tuesday dropped 0% to 1.43960. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.43667 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.44200 or trades above daily pivot 1.43933. Break above could target R1 at 1.44227. While to the downside, we are looking at 1.43667 (S1) and daily low of 1.43640 as support levels. USDCAD need to break on either side to indicate a short-term bias. A close below 1.43640 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.44787 |
| R2 | 1.44493 |
| R1 | 1.44227 |
| Daily Pivot | 1.43933 |
| S1 | 1.43667 |
| S2 | 1.43373 |
| S3 | 1.43107 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]