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COZfx: USD/CAD trading flat in early trade


kiriss5678

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COZforex: The US dollar was little changed against the Canadian dollar in early trade on Tuesday as the US government began a partial shutdown after Congress failed to reach a deal on a budget for the new fiscal year.

USD/CAD hit 1.0288 amid early US trade, the session low; the pair subsequently consolidated at 1.0313, edging up 0.05%. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0284, and a drop through could take it to the next support line of 1.0249. Meanwhile, the pair is predicted to find its first resistance at 1.0342, and a rise through could take it to the next resistance line of 1.0365.

The data showed that Canada’s GDP registered a growth of 0.6% in July, more than analysts’ call for a 0.5% growth and compared to a 0.5% drop witnessed in the previous month.

Investors remained wary amid worries that the first partial US government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer. Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.

Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the US debt ceiling, which the US Treasury Department has estimated will be reached by October 17.

The Institute of Supply Management was to produce a report on US manufacturing activity later in the trading day.

(COZ forex UK)

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