USD/CAD – Almost Unchanged on Mixed Canadian Data

The Canadian dollar is listless on Monday, as USD/CAD trades in the mid-1.14 range. On the release front, Canadian Building Permits slipped to 0.7% in October. There was better news from Housing Starts, which jumped to 196 thousand. In the US, the sole event on the calendar was Labor Market Conditions Index, a new economic indicator which the Federal Reserve introduced in October. The indicator fell to 2.9 points in November.

Canadian data started off the week on a mixed note. Building Permits, which tends to show strong fluctuation, tumbled to 0.7%, compared to a 12.7% gain a month earlier. This fell short of the forecast of 2.1%.  There was better news from Housing Starts, which posted a strong gain of 196 thousand, up from 184 thousand in the previous release. However, the reading was short of the estimate of 201 thousand.

US employment data looked superb on Friday, as Nonfarm Payrolls shot up to 321 thousand in November, stunning the markets which had expected a rise of 231 thousand. There was also a rise in wages, which translate into stronger inflation numbers. The unemployment rate held steady at 5.8%, matching the forecast. The excellent Nonfarm Payrolls should help allay concerns about whether the economy can weather an expected rate increase in 2015.

USD/CAD for Monday, December 8, 2014

USD/CAD December 8 at 15:25 GMT

USD/CAD 1.1448 H: 1.1459 L: 1.1427

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.1124 1.1278 1.1414 1.1493 1.1669 1.1723

 

  • USD/CAD has been marked by limited movement in the Asian and European sessions. The pair has edged up in North American trade.
  • 1.1414 is providing weak support. 1.1278 is stronger.
  • 1.1493 is an immediate resistance line. 1.1669 is next.
  • Current range: 1.414 to 1.1493

Further levels in both directions:

  • Below: 1.1414, 1.1278, 1.1124, 1.1004 and 1.0961
  • Above: 1.1493, 1.1669, 1.1723 and 1.1875

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions on Monday. This is not consistent with the movement of the pair, as the Canadian dollar has posted small gains. The ratio has a majority of  short positions, indicative of trader towards the pair losing ground.

USD/CAD Fundamentals

  • 13:13 Canadian Housing Starts. Estimate 201K. Actual 196K.
  • 13:30 Canadian Building Permits. Estimate 2.1%. Actual 0.7%. 
  • 15:00 US Labor Markets Conditions Index.

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.