- CAD boosted with Q2 GDP growth.
- Medium-term potential support zone remains between 1.2360 and 1.2320 levels.
- The strong GDP data supports another BoC rate hike in September.
Canada GDP grew 0.3% (forecast 0.1%) in June 2017, rising for the eighth month in a row reported by Statistics Canada on Thursday session. Since June 2016, Canada GDP has grown every month.
June 2017 GDP summary:
- June 2017 GDP growth led by Construction sector, grew 2.0% posting its largest gain since July 2013.
- The retail trade sector grew for the sixth month in a row, up 0.8%.
- The transportation and warehousing sector (+0.6%) expanded in June, up for the fourth month in a row.
- Accommodation and food services rose 0.8% in June, led by 1.4% growth in accommodation services.
- Manufacturing edged up 0.2% in June.
- The wholesale trade sector declined 0.4% in June following six consecutive months of growth.
- Mining and quarrying edged down 0.2% in June following three months of increases.
The CAD rallied across the board, grew more than a percent against GBP,USD and NZD, against EUR and JPY rose 0.90% and against CHF rose 0.60%.
- USDCAD resistance moved down to 1.2660 from 1.2780.
- NZ election likely to raise the down side risk to NZDCAD.
- CADJPY spotted with a weekly bullish pattern.
USDCAD rose 2.3% in the first half of the month and completely wiped out the gains in the second half. It has a support zone remains between 1.2440 and 1.2400 below this 1.2350 exists in the near term.
Medium-term potential support zone remains between 1.2360 and 1.2320 levels.
The daily and weekly RSI making a higher low and the oscillators remain bullish. We can draw a conclusion with the combination of daily and weekly RSI/RVI that, the selling likely to be arrested between 1.2400-1.2350. The resistance moved down to 1.2660 from 1.2780.
FX markets focus on today’s US August NFP. Ahead of the major event, USDCAD sits tad above 200WMA.
- Intraday trading resistance seems at 1.2550/1.2560, 1.2600 and 1.2690.
- Intraday trading supports moved to 1.2440, 1.2400 and 1.2350.
Also read other CAD crosses technical views:
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