USDCAD under Pressure and Awaits Canada CPI Report
Aayush Jindal
Key Highlights
US Dollar collapsed recently against the Canadian dollar and a few other major currencies, as the Fed rate decision failed to help the greenback.
Canadian Consumer Price Index (CPI) will be released by the Statistics Canada with the forecast of no change in the CPI in August 2015, compared with the preceding month.
In China today, the housing price index, released by the National Bureau of Statistics posted a decline of 2.3% in August 2015.
USDCAD Technical AnalysisThe US Dollar was seen trading in a downtrend against the Canadian Dollar, and after yesterday’s release of the Fed interest rate decision, the USDCAD pair came under pressure. There was a nasty downside move noted, taking the pair towards 1.3080.There was a bullish trend line formed on the hourly chart of the USDCAD pair, which was breached for losses. There is another bearish trend line formed, i.e. waiting to act as a hurdle for buyers if the pair moves higher from the current levels.Moreover, the pair is also below the 100 and 200 hourly simple moving average, which is a negative sign for buyers in the near term.Canadian CPIToday, there is a major release lined up in Canada, as the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be published by the Statistics Canada. The forecast is lined up for no change in the CPI in August 2015, compared with the preceding month. This is on the lower side, as there as an increase of 0.1% last time.Moreover, in terms of the yearly change, the CPI is forecasted to increase by 1.3% in August 2015, compared with the same month a year ago and is same as the last time.Let us see how the outcome shapes up and whether it helps the USDCAD pair in the near term or not.Chinese Housing Price IndexEarlier during the Asian session, the housing price index, which is a key indicator for economy, as rising prices usually encourages new construction was released by the National Bureau of Statistics. The outcome was mixed as there was a decline of 2.3% in August 2015.
There was a bullish trend line formed on the hourly chart of the USDCAD pair, which was breached for losses. There is another bearish trend line formed, i.e. waiting to act as a hurdle for buyers if the pair moves higher from the current levels.Moreover, the pair is also below the 100 and 200 hourly simple moving average, which is a negative sign for buyers in the near term.Canadian CPIToday, there is a major release lined up in Canada, as the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be published by the Statistics Canada. The forecast is lined up for no change in the CPI in August 2015, compared with the preceding month. This is on the lower side, as there as an increase of 0.1% last time.Moreover, in terms of the yearly change, the CPI is forecasted to increase by 1.3% in August 2015, compared with the same month a year ago and is same as the last time.Let us see how the outcome shapes up and whether it helps the USDCAD pair in the near term or not.Chinese Housing Price IndexEarlier during the Asian session, the housing price index, which is a key indicator for economy, as rising prices usually encourages new construction was released by the National Bureau of Statistics. The outcome was mixed as there was a decline of 2.3% in August 2015.
There was a bullish trend line formed on the hourly chart of the USDCAD pair, which was breached for losses. There is another bearish trend line formed, i.e. waiting to act as a hurdle for buyers if the pair moves higher from the current levels.Moreover, the pair is also below the 100 and 200 hourly simple moving average, which is a negative sign for buyers in the near term.Canadian CPIToday, there is a major release lined up in Canada, as the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be published by the Statistics Canada. The forecast is lined up for no change in the CPI in August 2015, compared with the preceding month. This is on the lower side, as there as an increase of 0.1% last time.Moreover, in terms of the yearly change, the CPI is forecasted to increase by 1.3% in August 2015, compared with the same month a year ago and is same as the last time.Let us see how the outcome shapes up and whether it helps the USDCAD pair in the near term or not.Chinese Housing Price IndexEarlier during the Asian session, the housing price index, which is a key indicator for economy, as rising prices usually encourages new construction was released by the National Bureau of Statistics. The outcome was mixed as there was a decline of 2.3% in August 2015.