- Canadian Dollar traded higher against the US dollar, and looks set for more gains.
- USDCAD is hovering near 1.3530, which if broken may call for a move towards 1.3500.
- Canadian Raw Material Price Index released by the Statistics Canada posted a decline of 0.4% in Jan 2016, less than the forecast of -3.3%.
- Canadian current account, released by Statistics Canada posted a trade deficit of -15.38B, better compared with the forecast of -15.60B in Q4 2015.
The US Dollar was down against the Canadian Dollar. There is a consolation pattern forming on the hourly chart of the USDCAD pair, which may act as a catalyst for the next move. The pair is now below the 50 hourly simple moving average, and if sellers gain control, more downsides are possible.
If the USDCAD pair breaks the highlighted triangle support area, then the next stop of sellers could be around the 1.3460 level.
On the upside, the 50 hourly SMA, followed by the highlighted triangle resistance may act as a hurdle.
Canadian Current Account
The Canadian current account, which is a net flow of current transactions, including goods, services and interest payments into and out of Canada was released by Statistics Canada. The market was positioned for a trade deficit of -15.60B in Q4 2015. However, the outcome was a touch better, as the trade deficit was -15.38B.
The report highlighted that “Canada’s current account deficit (on a seasonally adjusted basis) edged up $0.1 billion in the fourth quarter to $15.4 billion. On an annual basis, the current account deficit increased from $44.9 billion in 2014 to $65.7 billion in 2015.”
Overall, the Canadian Dollar is trading with a positive tone, and if all goes well more gains are possible.