Forex - USD/CAD hits session lows after Canadian data

Published 04/09/2013, 09:02 AM
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CAD/JPY
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Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Tuesday following the release of mixed Canadian housing data.

USD/CAD hit 1.0134 during early U.S. trade, the pair’s lowest since Friday, the pair subsequently consolidated at 1.0143, down 0.25%.

The pair was likely to find support at 1.0129, Friday’s low and resistance at 1.0174, the session high.

The Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts ticked up to 184,000 units in March from 183,200 units in February.

Analysts had expected housing starts to dip to 177,000 units.

Meanwhile, official data showed that the number of new building permits issued in Canada rose less-than-expected in February.

Statistic Canada said the number of new building permits issued rose by a seasonally adjusted 1.7% in February, compared to expectations for a 4% increase.

January’s figure was revised to a 1.8% gain from a previously reported increase of 1.7%.   

The Canadian dollar found support earlier in the day after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.

The data eased concerns over further policy tightening by the Chinese government.

The loonie, as the Canadian dollar is also known eased back from its highest level since October 2008 against the yen, with CAD/JPY sliding 0.22% to 97.50.

Broad based yen selling was expected to resume amid the effects of the Bank of Japan’s massive new monetary stimulus program announced last week.




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