COZfx: Canada’s building permits plunged in August, housing starts declined in September

COZforex: For the past trading session, the USD declined 0.3% against the CAD and closed at 1.2517.

On the economic front, Canada’s building permits declined more-than-anticipated by 5.5% on a monthly basis in August, easing for the second straight month and compared to a revised drop of 2.8% in the previous month. Market anticipation was for building permits to drop 1.0%. Further, the nation’s seasonally adjusted housing starts dropped to a level of 217.1K in September, compared to market consensus for a fall to a level of 212.0K. Housing starts had recorded a reading of 223.2K in the previous month.

In the Asian session, the pair is trading at 1.2515, with the USD trading a tad lower against the CAD from yesterday’s close.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said: USD/CAD is expected to find support at 1.2490 and a fall through could take it to the next support level of 1.2464; Meanwhile, the pair is expected to find its first resistance at 1.2535, and a rise through could take it to the next resistance level of 1.2554.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.


(COZ forex UK)