Forex - USD/CAD little changed after U.S. housing data

Published 11/20/2012, 09:14 AM
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Investing.com - The U.S. dollar was little changed against the Canadian dollar on Tuesday, after official data showed that U.S. housing starts rose at the fastest rate in four years last month, as markets looked ahead to a meeting of euro zone finance ministers later in the trading day.

USD/CAD hit 0.9978 during early U.S. trade, the session high; the pair subsequently consolidated at 0.9968, inching up 0.05%.

The pair was likely to find support at 0.9953, Monday’s low and resistance at 1.0016, Monday’s high.

The Commerce Department said U.S. housing starts rose 3.6% in October to a seasonally adjusted annual rate of 0.894 million, confounding expectations for a 3.7% decline to 0.840 million.

Housing starts for September were revised down to 0.863 million units from a previously reported 0.872 million units.

However, the number of building permits issued in October fell 2.7% to a seasonally adjusted 0.866 million, compared to expectations for a decline to 0.865 million.

Building permits issued in September totaled 0.890 million units.
In Canada, official data showed that wholesales sales fell 1.4% in September, compared to expectations for a 0.3% increase.

Market sentiment remained cautiously optimistic ahead of a meeting of euro zone finance ministers later in the day to discuss whether Greece can receive its next installment of bailout funds.

Hopes for progress in releasing aid for Greece offset a one notch downgrade on France by ratings agency Moody’s overnight.

The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.03% to 1.2761.

Later Tuesday, Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.




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