FXstreet.com (Barcelona) - The Canadian Dollar has been hurt by the decline in the Consumer Price Index in Canada during December. Against the US Dollar, the USD/CAD has jumped around 60 pips from 1.0375 ahead the data to break 1.0410 resistance and hit 2-week high at 1.0445. The pair is rising 1.25% so far today from opening price action at 1.0310 to the current 1.0440.
Canadian CPI has decline 0.3% between November and December, more than 0.1% decline expected by markets. Year over year, Inflation has remained at 1.5% in December despite increase expected to 1.8% by market.
The USD/CAD is rebounding off low, says TJ Marta, chief analyst at Marta on the Markets, and continues: USD/CAD is up significantly overnight, rejecting the recent squeeze ever lower towards a test of the Oct low. The slow stochastics are oversold and crossing higher, suggesting the risk of further consolidation and even a rebound.
Resistance lies at 1.0414 (Jan12 high), 1.0578 (Dec30 high), 1.0749 (Nov27 high), 1.0870 (Nov2 high), 1.0959 (Oct high), 1.0993 (Sep high), and then 1.10 (psychological). Support lies at 1.0225 (Jan14 low), 1.0207 (Oct low), and 1.00 (psychological). In terms of other assets correlating with USD/CAD, watch the SPX and DXY. CRB and crude oil are also significant. Marta concludes.