The Canadian dollar has posted slight gains for a second successive day. In Wednesday’s North American session, USD/CAD is trading at 1.3151, down 0.15% on the day.
US durable goods orders mixed, GDP next
With no Canadian data on Wednesday, the focus was on US durable goods orders for July. The news was mixed. The headline reading sparkled with a gain of 11.2%, up from 7.3% beforehand. This crushed the estimate of 4.4%. The core figure slowed to 2.4%, down from 3.3% in June. Still, this beat the forecast of 1.9%.
On Thursday, the US releases second-estimate GDP for Q2. In July, the first estimate fell by a staggering 32.9%. This figure reflected the devastating impact that the Covid-19 pandemic has had on the US economy. With much of the country under lockdown in April and May, economic activity nose-dived. The second estimate is expected to be revised slightly upwards, with an estimate of 32.5%. Unless the second estimate is widely off the forecast, this release is unlikely to have much impact on the US dollar.
- 1.3218 is the next resistance line. This is followed by resistance at 1.3265
- USD/CAD is currently testing support at 1.3146. Below, there is support at 1.3121
- USD/CAD has broken through the 10-day MA line, which is a bearish sign for the pair
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