The USDCAD Exchange Rate Rises Following American Durable Goods Bookings Fall Short of Forecasts. Trading at 1.358 mark currently
USDCAD fell to a fresh midday bottom of 1.3484 prior to recovering up over the 1.3500 level. Shortly after US Durable Goods Order fell higher than anticipated. The currency pair is still trapped in short-term gridlock as investors anticipate American Consumer Consumption Expenditures PCE) reports on pricing late this week.
Highlights
- The USDCAD is gaining pace on risk aversion mood prior to GDP reports via both countries.
- The CAD is under pressure as the West Texas Intermediate prices fall.
- The CME FedWatch Tools predicts a 1.0 percent chance of rate decreasing in the month of March.
Fundamental Perspective
The USDCAD duo extends its positive run to the 4th straight period, moving high at 1.3570 over the European trade. The Loonie came in decline owing to a drop in oil rates, which supported the duo. On Thursday afternoon, the GDP figures for Canada will additionally be released.
WTI prices for oil have broken their 2-day gaining run, falling to roughly $77.900 / barrel at the point of publishing. Rising rate of borrowing are having a negative effect on the world’s economies and cutting oil consumption.
Amid low US bond rates, the DXY strengthens. The dollar’s value has risen to almost 104.10. Whereas the rates on two-year and the ten-year US Treasury bills are 4.69 percent and 4.29% percent each.
The strengthened US currency has bolstered the USDCAD couple, probably owing to the marketplace’s risk aversion mentality. Prior to the announcement of initial GDP Annualized figures from USA on Wed. Nevertheless, speculations are likely American GDP will continue around 3.3 percent in the 4th quarter of the year 2023.
Technical Perspective
Despite a comeback in commodities markets, the USDCAD makes momentum. Recent efforts to break under the key support level of 1.3480 – 1.3500 levels were unsuccessful. Suggesting that Pair continues to acquire upward steam.
The Relative Strength Index (RSI) continues in medium area. showing that the market has lots of space for upward movement provided the correct triggers arrive.
Source: TradingView – Four-hour graph
Technical Indicators & Signals
| Name | Value | Action |
| RSI(14) | 68.204 | Buy |
| STOCH(9,6) | 48.816 | Neutral |
| STOCHRSI(14) | 100.000 | Overbought* Caution |
| MACD(12,26) | 0.001 | Buy |
| ADX(14) | 29.112 | Buy |
| Williams %R | -2.538 | Overbought* Caution |
| Name | Value | Action |
| CCI(14) | 290.6592 | Overbought |
| ATR(14) | 0.0022 | Less Volatility |
| Highs/Lows(14) | 0.0053 | Buy* |
| Ultimate Oscillator | 64.411 | Buy* |
| ROC | 0.574 | Buy |
| Bull/Bear Power(13) | 0.0088 | Buy |
Trend – Bullish
