USD/CAD dips on mixed US durable goods

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.

US Open – Investors Focus on Jackson Hole

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USD/CAD Technical

  • 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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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.