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COZfx: USD/CAD trading lower the Canada’s budget updates


kiriss5678

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COZforex: The US dollar dropped to more than 1 week lows against the Canadian dollar on Wednesday as investors awaited the Canadian government’s update on fiscal and economic conditions later in the day.

USD/CAD was down 0.32% to 1.1298 from 1.1333 late Tuesday, extending its pullback from the more than five year highs of 1.1465 hit last week. In technical analysis, USD/CAD is predicted to find support at 1.1307, and a drop through could take it to the next support line of 1.1269. Meanwhile, the pair is predicted to find its first resistance at 1.1393, and a rise through could take it to the next resistance line of 1.1441.

Canadian Finance Minister Joe Oliver was due to present the fall fiscal and economic update later Wednesday, which was expected to show a small budget surplus. In the budget earlier this year, the government said it expect to post a small deficit in the current year before posting a surplus of $6.4 billion for fiscal year 2015-16.

Demand for the Canadian dollar continued to be underpinned following Friday’s unexpectedly strong domestic employment report.

Oil prices remained lower ahead of the latest US inventory data due out later in the day. Global oil prices have fallen sharply in recent months, pressure lower by the stronger greenback and concerns over ample supplies and slowing demand.

Crude oil is Canada’s largest export and the Canadian dollar is sensitive to fluctuations in oil prices.

(COZ forex UK)

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