COZfx: USD/CAD trading lower at 2 months low

[kiriss5678]

COZforex: The US dollar was steady close to 2-and-a-half month lows against the Canadian dollar on Wednesday as upbeat data from Germany and China lifted risk appetite.

USD/CAD hit 1.0039 amid early U.S. trade, the session low; the pair subsequently consolidated at 1.0046, edging up 0.01%. Coz forex senior derivatives trader Daniel • Moloney said, USD/CAD is predicted to find support at 1.0030, and a drop through could take it to the next support line of 1.0007. Meanwhile, the pair is predicted to find its first resistance at 1.0080, and a rose through could take it to the next resistance line of 1.0107.

Official data showed that German industrial output jumped 1.2% in March, the largest increase in 12 months and confounding expectations for a 0.1% drop.

The data, coming one day after a report showing that German factory order also beat expectations in March bolstered the outlook for first quarter growth in the euro zone’s largest economy and tempered expectations for fresh rate cuts by the European Central Bank.

Earlier Wednesday, official data showed that Chinese imports and exports rise more than expected in April, easing concerns over a slowdown in the world’s second largest economy. China's exports rise 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, above expectations for a surplus of USD 15.05 billion.

The Canadian dollar was almost unchanged after official data showed that Canadian building starts dropped in line with expectations in April, dropping to 174,900 units from 181,100 units in March.

(COZ forex UK)