The greenback refused to becapped below the parity with the Canadian dollar after dovish assessment hasbeen released out from BOC after its decision to keep the interest rate unchangedas it is at 1% since September 2010.
The report has indicated thatthe bank is underpinning the household spending which is struggling suggestingkeeping the interest rate at this low level for a longer than expected period.
As the market has seenpreviously in the data which came out from Canada substantial improving byrising of the net added jobs last month by 39.8k for the fifth consecutivemonth of net adding with falling of the unemployment in December to 7.2% whilethe market was waiting for it to stand at 7.8%.
But what is encouraging BOCto adopt this stance is considerable easing of the inflation upside risks inCanada as what has been seen by the falling of its CPI to 0.8% y/y last Novemberwhich is slowest rate of rising since October 2009 giving space to BOC to keepa accommodative policy longer.
USDCAD has broken 200 movingaverage over the daily chart after the data after it had previously broken itover the 4 hours chart last week after the announcement of the US petroleuminstitute which has shown rising of the US inventory of the crude oil to the highestlevel in 31 years last year by rising by 13.8% last year only while itsconsuming has eased back to the lowest in 16 years falling by 2.1% yearly. The USimports of the crude oil have fallen too to the lowest level in 15 years fallingby 6.9% yearly. These data suggest falling of the US demand of oil from Canadawhich exports mainly petroleum protects to it.
God willing, USDCAD can meetnow in the case of rising further resisting level at 1.0055 whereas it hasformed its recent top on 16th last November and it is also thehighest rate of it since rising from its bottom at 0.9632 on 14th oflast September while getting back down can be met by supporting levels at0.9902, 0.9886 before 0.9814 which is still the bottom of this year and it hasbeen formed on 11th of this month and its falling can be followed by0.9762, 0.7933 before meeting 0.9632 again.