Forex - USD/CAD edges below parity after Canadian economic data

Published 11/10/2010, 09:36 AM
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Investing.com – The U.S. dollar was down against its Canadian counterpart on Wednesday, falling below parity to hit a fresh daily low, following the release of key Canadian data on its trade balance. 

USD/CAD hit 0.9993 during European afternoon trade, a daily low; the pair subsequently consolidated at 1.0002, shedding 0.77%.

The pair was likely to find support at 0.9929, the low of April 21, and resistance at 1.0109, the high of November 4.

Earlier in the day, Statistics Canada said the country's trade deficit widened unexpectedly to a seasonally adjusted CAD 2.5 billion in September, after contracting to CAD 1.5 billion in August, whose figure was revised from a deficit of CAD 1.3 billion.

Economists had expected the trade deficit to contract to CAD 1.4 billion in September.

The report said that import volumes increased 1.2% to CAD 35.6 billion, the highest level since November 2008, while exports fell 2.2% in September. 

The loonie was also up against the euro, with EUR/CAD shedding 0.53% to hit 1.3809.

Earlier in the day, official U.S. data showed that the number of individuals filing for initial jobless benefits in the week ending November 6 fell to a seasonally adjusted 435K, after rising to a revised 459K in the preceding week. Analysts had expected initial jobless claims to fall to 450K in the week ending November 6.


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