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USD/CAD – Canadian Dollar Posts Strong Gains on Mixed US Numbers

The Canadian dollar has posted strong gains on Tuesday, as USD/CAD trades in the high-1.23 range. On the release front, US numbers were mixed. Durable Goods Orders posted a sharp decline of 3.4%. Elsewhere, New Home Sales rose to 481 thousand, and CB Consumer Confidence jumped to 102.9 points.

It was a busy day for US releases. Durable Good reports disappointed, as  Durable Goods Orders plunged 3.4%, marking a 4-month low. There was no relief from Core Durable Goods Orders, which declined by 0.8%, its fifth drop in six readings. The markets had expected gains from both indicators. There was much better news later in the day, as CB Consumer Confidence jumped to 102.9 points, crushing the estimate of 95.3 points. New Home Sales followed suit, rising to 481 thousand, well above the forecast of 452 thousand,

Things have gone from bad to worse for the Canadian currency, which was pummeled mercilessly by the US dollar last week. The pair is currently trading at its highest level since April 2009. The pair took a hit late in the week following an unexpected rate cut by the Bank of Canada. The central bank lowered rates from 1.00% to 0.75%, citing weak inflation and the falling price of oil, which is Canada’s biggest export.

USD/CAD for Tuesday, January 27, 2015

USD/CAD January 27 at 16:00 GMT

USD/CAD 1.2388 H: 1.2501 L: 1.2383


USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2190 1.2261 1.2387 1.2469 1.2543 1.2680


Further levels in both directions:


OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in long positions on Tuesday, reversing the movement we saw a day earlier. This is not consistent with the pair’s movement, as the Canadian dollar has recorded strong gains. The ratio has a majority of short positions, indicative of trader bias towards the Canadian dollar continuing to move to higher ground.

USD/CAD Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

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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 [5]

Currency Analyst at Market Pulse [6]
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.
Kenny Fisher

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