Topic: COZfx: USD/CAD nearly unchanged in early trade
COZforex: The US dollar was little changed against its Canadian counterpart on Tuesday, after the release of lower-than-expected US inflation data, as investors awaited the outcome of the Federal Reserve's 2 days policy meeting.
USD/CAD hit 1.0576 amid early US trade, the session low; the pair subsequently consolidated at 1.0588, easing 0.07%. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0573, and a drop through could take it to the next support line of 1.0559. Meanwhile, the pair is predicted to find its first resistance at 1.0599, and a rise through could take it to the next resistance line of 1.0611.
The Department of Labor said consumer prices were flat in November after falling 0.1% in October. The annual rate of inflation rise 1.2% last month, undershooting expectations for an increase of 1.3%, but was up from a 4 year low of 1.0% in October.
In Canada, data showed that manufacturing sales rise 1.0% in October, defying expectations for a 0.2% drop.
Market sentiment remained subdued ahead of the outcome of the Federal Reserve’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
(COZ forex UK)