Forex - USD/CAD hits fresh daily low after strong Canada data

Published 12/08/2010, 08:48 AM
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Investing.com – The U.S. dollar extended losses against its Canadian counterpart on Wednesday, falling to a fresh daily low after a report showed that Canadian housing starts rose more-than-expected in November.

USD/CAD hit 1.0096 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.0099, shedding 0.17%.

The pair was likely to find support at 1.0011, Tuesday’s low and resistance at 1.0189, the high of December 2.

Earlier in the day, the Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts rose to 187,000 units in November, up from 168,000 units in October.

Economists had expected housing starts to rise to 172,000 in November.

Bob Dugan, chief economist at CMHC said, “Housing starts moved higher in November primarily due to a strong increase in urban multiple starts in Ontario.”

He added, “Looking ahead into 2011, housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.”

The loonie was also up against the euro, with EUR/CAD shedding 0.38% to hit 1.3373.

Later in the day, the U.S. was to publish official data on crude oil inventories. Crude oil is one of Canada’s major exports.

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