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USD/CAD in fresh lows on BoC, around 1.3360

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Canadian dollar has gained further ground vs. the greenback, sending USD/CAD to test fresh lows in the 1.3360/50 band.

    USD/CAD lower on BoC

    Spot has come under further selling pressure after the BoC has maintained its overnight rate at 0.5%, broadly in line with market expectations.

    The BoC expects the global growth to gather further traction this year despite persistent downside risks, while it has also acknowledged the good pace of the US expansion.

    Regarding oil, the central bank sees current low prices having an impact on the domestic growth. Furthermore, inflation in Canada remains within expectations and household spending continues to sustain the domestic demand.

    USD/CAD significant levels

    As of writing the pair is retreating 0.33% at 1.3372 and a break below 1.3307 (200-day sma) would open the door to 1.3259 (2016 low Mar.7) and finally 1.3034 (low Nov.3 2015). On the other hand, the immediate resistance aligns at 1.3603 (20-day sma) followed by 1.3679 (100-day sma) and then 1.3861 (high Feb.24).
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