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Forex - USD/CAD lower after U.S. GDP, jobless claims data

Published 12/22/2011, 09:41 AM
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Investing.com - The U.S. dollar was lower against its Canadian counterpart on Thursday, after mixed U.S. GDP and jobless claims data as trading volumes remained light ahead of the Christmas holiday weekend.

USD/CAD hit 1.0281 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.0242, shedding 0.24%.

The pair was likely to find support at 1.0208, Wednesday’s low and resistance at 1.0347, the high of December 13.

Official data showed earlier that the U.S. economy grew at a slower rate than initially estimated during the third quarter.

In a report, the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.8% during the third quarter, down from a previous estimate of 2.0%.

Analysts had expected the second estimate of U.S. gross domestic product to remain unchanged at 2.0%.

The data primarily reflected a downward revision to personal consumption, which grew 1.6% compared to a previous estimate of 2.3%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.

A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell unexpectedly to the lowest level since April 2008, dropping to 364,000, confounding expectations for a rise to 375,000.

Meanwhile, the loonie remained supported after crude oil for delivery in February advanced 0.40% to trade at USD99.06 a barrel on the New York Mercantile Exchange.

Raw materials, including oil account for about half of Canada’s export revenue.

Elsewhere, the loonie was higher against the euro with EUR/CAD retreating 0.35%, to hit 1.3348.

The University of Michigan was also to release revised data on U.S. consumer sentiment and inflation expectations.


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