USDCAD Gives Up 60 Pips as BAC Leaves Interest Rates Changes
USDCAD trades 0.38% lower at 1.3285 after Bank of Canada left interest rates unchanged at 1.75% as widely expected by markets. On the macro data front, the United States Redbook Index (year over year) climbed from previous 5.7% to 6.5% in August 30, the monthly reading for Redbook Index came in at -1% in August 30, from previous -1.4%. The US Trade Balance registered at $-54B, below forecasts of $-53.5B in July. ISM-NY Business Conditions Index climbed from previous 43.5 to 50.3 in August. In Canada the Labor Productivity (quarter over quarter ) registered at 0.2%, below forecasts of 0.3% in 2Q, 2019. The International Merchandise Trade registered at $-1.12B, below expectations of $-0.4B in July. Crude oil prices, Canada main export product jumped 3.60% higher at $55.88 per barrel.
The positive momentum cancelled today for USDCAD as the pair gives up 60 pips from daily high at 1.3340 down to 1.3278. The pair as of writing breached the support at 200 and 100-day moving average. Sellers taking control and if the pair closes today below 1.3292 it will open the way for a move down to 1.3187 and the 50 day moving average. Immediate resistance for the pair now stands at 1.3344 today’s high, and then at 1.3382 the high from June 19th.