31 Jul 2013
USD/CAD testing 1.0290 support
FXstreet.com (London) - USD/CAD has remained offered throughout the European session ahead of key NA data coming up.
We will see USD/CAD eyeing up Canadian GDP for May mom at 12.30GMT. Research teams at TD Securities said “We’re looking for GDP to rise by 0.3% M/M (in line with consensus), marking the fifth consecutive monthly increase. Much of the strength is expected to stem from the services side, while in the goods sector, output is still expected to be modestly positive. We note though that a modest decline in aggregate hours worked in May places downside risk to our forecast. If our forecast is realized however, it would go a long way in helping to cushion expected softness in June due to disruptions stemming from the Alberta flooding and may even tilt the balance of risk for our 1.6% estimate for Q2 GDP towards the upside”.
US Data
US ADP employment change will be released just ahead of that number. We hen have US GDP in focus. What will be interesting is the markets reaction to the new GDP monitoring system that makes up the data. The US Government has invented a new way of calculating the data that now includes R&D spending, art, music, film royalties, books and theatre, and some will argue it is not comparable with the rest of the global nations. In focus for the evening is the FOMC.
USD/CAD levels
The 20d ma is at 1.0394, with 50d ma at 1.0361, and the 200d ma is at 1.0132. The RSI reads (9) 32.34. Supports start from 1.0150, 1.0170, on the way to 1.0230, and 1.0253, while Spot is currently 1.0295. Resistances are 1.0310, 1.0349 1.0368 1.0393 1.0445.
We will see USD/CAD eyeing up Canadian GDP for May mom at 12.30GMT. Research teams at TD Securities said “We’re looking for GDP to rise by 0.3% M/M (in line with consensus), marking the fifth consecutive monthly increase. Much of the strength is expected to stem from the services side, while in the goods sector, output is still expected to be modestly positive. We note though that a modest decline in aggregate hours worked in May places downside risk to our forecast. If our forecast is realized however, it would go a long way in helping to cushion expected softness in June due to disruptions stemming from the Alberta flooding and may even tilt the balance of risk for our 1.6% estimate for Q2 GDP towards the upside”.
US Data
US ADP employment change will be released just ahead of that number. We hen have US GDP in focus. What will be interesting is the markets reaction to the new GDP monitoring system that makes up the data. The US Government has invented a new way of calculating the data that now includes R&D spending, art, music, film royalties, books and theatre, and some will argue it is not comparable with the rest of the global nations. In focus for the evening is the FOMC.
USD/CAD levels
The 20d ma is at 1.0394, with 50d ma at 1.0361, and the 200d ma is at 1.0132. The RSI reads (9) 32.34. Supports start from 1.0150, 1.0170, on the way to 1.0230, and 1.0253, while Spot is currently 1.0295. Resistances are 1.0310, 1.0349 1.0368 1.0393 1.0445.