Canada’s dollar touched the strongest level in more than a week after the country’s central bank removed the word “neutral” from its policy statement, fueling bets officials are more open to raising interest rates.
The USD rose 0.09% against the CAD to close at 1.1239. The Canadian Dollar lost ground, after Canada’s retail sales unexpectedly eased 0.3% on a monthly basis in August, lower than market expectations for a flat reading and following a 0.1% decline registered in July.
Meanwhile, the BoC decided to keep its benchmark interest rates unchanged at 1.0%, in line with market expectations. Separately, the BoC in its monetary policy report indicated that the Canadian economy would grow 2.5% in 2015 and would slow down to 2% by the end of 2016.
In the Asian session, at GMT0300, the pair is trading at 1.1255, with the USD trading 0.14% higher from yesterday’s close.
The pair is expected to find support at 1.1194, and a fall through could take it to the next support level of 1.1133. The pair is expected to find its first resistance at 1.1305, and a rise through could take it to the next resistance level of 1.1355.
Amid no economic releases from Canada today, investor sentiments would be governed by global macroeconomic news.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.