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Forex - USD/CAD hits 2-day low after mixed U.S. economic data

Published 11/24/2010, 09:31 AM
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Investing.com – The U.S. dollar was down against its Canadian counterpart on Wednesday, tumbling to a 2-day low following significantly worse-than-expected U.S. data on durable goods orders which overshadowed better-than-expected data on initial jobless claims.

USD/CAD hit 1.0130 during European afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.0142, plunging 0.99%.

The pair was likely to find support at 1.0064, the low of November 16 and resistance at 1.0263, Tuesday’s high.

Earlier in the day, the U.S. Census Bureau said core durable goods orders fell unexpectedly in October, dropping 2.7% after rising by a revised 1.3% in September. Analysts had expected core durable goods orders to rise by 0.4% in October.

Durable goods orders, which include transportation items, tumbled more-than-expected in October, falling 3.3% posting the biggest fall since January 2009 after rising by a revised 5.0% in September. Analysts had expected durable goods orders to decline by 0.3% in October.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell more-than-expected, declining to the lowest level since July 2008.

Initial jobless claims declined to a seasonally adjusted 407K in the week ending November 20, after rising to a revised 441K in the preceding week Analysts had expected initial jobless claims to fall to 434K in the week ending November 20.

The loonie was also sharply higher against the euro, with EUR/CAD tumbling 0.81% to hit 1.3586.

Later in the day, the U.S. was to release official data on new home sales as well as revised data on consumer sentiment and inflation expectations.


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