The Canadian dollar was unchanged over the course of the week, closing at 1.34 line. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD.
The US Non-Farm Payrolls were upbeat, with wage growth improving to 0.3%, above the estimate of 0.2%. Canadian employment change posted an excellent gain of 43.9 thousand, crushing the estimate of -10.0 thousand.
USD/CAD daily graph with support and resistance lines on it. Click to enlarge:
- Housing Starts: Tuesday, 12:15. Housing Starts provides a snapshot of the level of the activity in the housing sector. The indicator jumped to 221 thousand in September, crushing the estimate of 194 thousand. The estimate for October stands at 195 thousand.
- Building Permits:Â Tuesday, 12:30. Building Permits tends to show strong movement, making accurate forecasts a tricky task. In August, the indicator jumped 10.4%, well above the estimate of 1.1%. This was the highest gain since February.
- BOC Deputy Governor Lawrence Schembri Speaks:Â Tuesday, 15:20. Schembri will speak at an event in Halifax. A speech which is more hawkish than expected is bullish for the Canadian dollar.
- NHPI: Thursday, 12:30. This housing inflation index dipped to 0.2% in August, within expectations. Another gain of 0.2% is expected in the September report.
- BoC Governor Stephen Poloz Speaks: Friday, 14:50. Poloz will deliver remarks at a bank conference in Santiago, Chile. Analysts will be looking for hints regarding the BoC’s future monetary policy.
USD/CAD opened the week at 1.3405 and dropped to a low of 1.3351. USD/CAD then reversed directions and climbed to a high of 1.3465 as resistance held at 1.3457 (discussed last week). The pair closed the week at 1.3399.
Live chart of USD/CAD:
Technical lines, from top to bottom
We begin with resistance at 1.3813. This line was a cushion in January and February.
