USD/CAD dips on mixed US data

The Canadian dollar has posted slight gains in Tuesday trade. Early in the North American session, USD/CAD is trading at 1.3186, down 0.23% on the day.

US consumer confidence slides

The US consumer held on tighter to the purse strings in July. The Conference Board Consumer Confidence indicator fell for a second straight month, falling to 84.8. This was down from 91.7 a month earlier and missed the estimate of 93.0. There was some positive news as well. The Richmond Manufacturing Index accelerated for a fifth successive month, rising from 10 to 18. In the construction sector, New Home Sales soared to 901 thousand, up sharply from 776 thousand beforehand.

In Canada, Corporate Profits declined by 8.0% in Q2, a definite improvement from the plunge of -38.4% in the first quarter. The Canadian economy has been showing signs of recovery, such as an improving labor market. Investors will be keeping a close eye on Canada’s GDP, which will be released on Friday. GDP is expected in at 5.2% in June, after a gain of 4.5% in the May release.

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USD/CAD Technical

 

  • 1.3258 is the next resistance line. It was tested last week. This is followed by resistance at 1.3299
  • 1.3155 is the first support line. The next support is 1.3093, which has held since January
  • The 10-day MA line is putting downward pressure on the pair. If USD/CAD breaks below this line, it is a bearish sign for the pair

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.