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USD/CAD looking to stabilize below 1.3200
FXStreet (Córdoba) - USD/CAD has entered a consolidation phase just below the 1.3200 level after seesawing in a wide range earlier on the session at the rythm of market sentiment and economic data.
USD/CAD climbed to a daily high of 1.3232 during the Asian session, as worries about China weighed on commodity currencies, although it completely retraced gains afterwards and bottomed out at 1.3117. After that, USD/CAD has spent the last hours in a range unable to set short-term direction and it was trading at 1.3190, recording a 0.39% gain on the day.
Data only provided intraday volatility
On the data front, Canadian GDP grew by 0.5% in June, beating expectations of 0.2%. In the US, ISM PMI showed August manufacturing activity expanded at its slowest pace in more than 2 years (51.1 versus 52.6 expected), while July construction spending rose 0.7% to the highest level since May 2008.
USD/CAD levels to watch
On the upside, next resistances are seen at 1.3232 (Sep 1 high), followed by 1.3300 (psychological level/Aug 27 high) and finally 1.3326 (Aug 31 high). On the flip side, immediate supports line up at 1.3116 (Aug 31 low), 1.3059 (Aug 21 low) and then 1.3023 (Aug 19 low).
USD/CAD climbed to a daily high of 1.3232 during the Asian session, as worries about China weighed on commodity currencies, although it completely retraced gains afterwards and bottomed out at 1.3117. After that, USD/CAD has spent the last hours in a range unable to set short-term direction and it was trading at 1.3190, recording a 0.39% gain on the day.
Data only provided intraday volatility
On the data front, Canadian GDP grew by 0.5% in June, beating expectations of 0.2%. In the US, ISM PMI showed August manufacturing activity expanded at its slowest pace in more than 2 years (51.1 versus 52.6 expected), while July construction spending rose 0.7% to the highest level since May 2008.
USD/CAD levels to watch
On the upside, next resistances are seen at 1.3232 (Sep 1 high), followed by 1.3300 (psychological level/Aug 27 high) and finally 1.3326 (Aug 31 high). On the flip side, immediate supports line up at 1.3116 (Aug 31 low), 1.3059 (Aug 21 low) and then 1.3023 (Aug 19 low).
Author
Ani Salama
FXStreet
Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.
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