Release Explanation: Change in the selling price of new homes, a leading indicator of the housing market's health.
TheLFB-Forex.com Trade Desk Thoughts: According to Statistics Canada, contractors' selling prices for new homes decreased 0.5% between February and March, a slightly slower pace than the 0.7% decline observed the previous month. This resulted in a New Housing Price Index of 154.6.
The New Housing Price Index decreased by 2.4% in March compared with the same month a year earlier. This was the third consecutive year-over-year decline as a result of lower prices in most surveyed cities.
Between February and March, prices declined by 1.2% in Calgary and Edmonton, followed by Vancouver (-1.1%) and Victoria (-0.9%). In Calgary and Edmonton, declines were attributed to lower material and labor costs and lower lot prices from developers. In Vancouver and Victoria, builders reported lower prices due to competition and slow market conditions.
Forex Technical Reaction: The cad bounced from the 1.1450 level tonight, gaining 100 pips and is currently testing the 1.1560 level