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Forex - USD/CAD trims gains after weak U.S. jobs, durables data

Published 01/27/2011, 09:21 AM
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Investing.com – The U.S. dollar trimmed gains against its Canadian counterpart on Thursday, following the release of worse-than-expected U.S. data on initial jobless claims and durable goods orders.

USD/CAD retreated from 0.9987, the pair’s highest since Tuesday, to hit 0.9946 during European afternoon trade, up 0.06%.

The pair was likely to find support at 0.9911, Tuesday’s low and resistance at 1.0003, Tuesday’s high.

The U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected, climbing to a seasonally adjusted 454K, much more than the expected increase to 408K.

A separate report showed that U.S. core durable goods orders rose less-than-expected in December, increasing by a seasonally adjusted 0.5%, less than the forecast 0.6% increase.

Durable goods orders, which include transportation items, tumbled unexpectedly in December, dropping by a seasonally adjusted 2.5%, after falling by a revised 0.1% in November. Analysts had expected durable goods orders to rise by 1.5%.

Meanwhile, the loonie was down against the euro, with EUR/CAD rising 0.34% to hit 1.3675.

Later in the day, the U.S. was to publish a report on pending home sales.

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