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Forex - USD/CAD dips after U.S., Canadian trade data

Published 08/11/2011, 09:59 AM
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Investing.com – The U.S. dollar edged lower against its Canadian counterpart on Thursday, after both countries released data on their respective trade balances, while better-than-expected U.S. jobs data helped lift sentiment.

USD/CAD hit 0.9872 during U.S. morning trade, the daily low; the pair subsequently consolidated at 0.9935, dipping 0.13%.

The pair was likely to find support at 0.9765, the low of August 10 and resistance at 1.0009, the high of August 9 and a six-month high.

Statistics Canada said earlier that Canada’ trade deficit widened unexpectedly to CAD1.6 billion in June, after posting a deficit of CAD1.0 billion in May, whose figure was revised up from a deficit of CAD0.8 billion.

Analysts had expected Canada to a deficit of CAD0.9 billion in June.

Canada's exports fell 1.7% to CAD36.5 billion in June, while imports decreased 0.2% to CAD38.04 billion.

Meanwhile, the U.S. Bureau of Economic Analysis said that the U.S. trade deficit widened to a seasonally adjusted USD53.1 billion in June, compared to a deficit of USD50.8 billion in May, whose figure was revised up from a deficit of USD50.2 billion.

Analysts had expected the U.S. trade deficit to narrow to USD48.0 billion in June.

U.S. exports in June totaled USD170.8 billion, while U.S. imports totaled USD223.9 billion.

Separately, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending August 5 fell by 7,000 to a seasonally adjusted 395,000, outstripping expectations for a decline to 401,000.

Elsewhere, the Canadian dollar was also fractionally lower against the euro, with EUR/CAD easing up 0.01% to hit 1.4109.

European equities were significantly off their earlier highs, as fears over the region’s ongoing sovereign debt crisis continued to weigh on sentiment.  

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