Forex - USD/CAD erases losses after weak Canadian housing data

Published 10/07/2010, 09:12 AM
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Investing.com – The U.S. dollar erased losses against its Canadian counterpart on Thursday, following the release of significantly worse-than-expected Canadian data on building permits.

USD/CAD retreated from 1.0077 the daily low, to hit 1.013 during European afternoon trade, shedding 0.03%.

The pair was likely to find support at 1.0061, Wednesday’s low and resistance at 1.0166, Wednesday’s high.

Earlier in the day, Statistic Canada said the number of new building permits issued fell by a seasonally adjusted 9.2% in August, after declining by a revised 3.8% in July. Analysts had expected building permits to fall by 1.9% in August.

The report said that August’s sharp decline was due to a 22.9% decrease for non-residential building permits, which offset a 2.0% gain in the residential sector.

The loonie was also down against the euro, with EUR/CAD gaining 0.56% to hit 1.4162.

Also Thursday, official data showed that U.S. initial jobless claims declined to a seasonally adjusted 445K last week after falling to revised 456K in the preceding week. Analysts had expected jobless claims to decline to 455K last week.

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