USD/CAD Pushes Lower After Bank of Canada Holds

On Wednesday, the U.S. dollar pushed lower compared to its Canadian counterpart, after the Bank of Canada left interest rates unmoved and expressed hopefulness regarding the country’s perspectives for development.

USD/CAD reaches 1.3060 during U.S. morning trade, the session low, the pair then consolidated at 1.3046, dropping 0.48%.

The pair was expected to find support at 1.2996, the low of September 22 and resistance at 1.3141, Tuesday’s peak.

The Bank  of  Canada left its overnight cash rate unmoved at 0.50%, in line with market anticipations, along with keeping the bank rate a 0.75% and the deposit rate at 0.25%.

The Bank of Canada also stated the global economy was anticipated to regain momentum in the 2nd half of this year and through 2017 and 2018.

For Canada, the Bank expected progress of 1.1% in 2016 with an increase to “about 2%” in both 2017 and 2018.

The commodity-related Canadian dollar was also boosted by a sudden increase in oil prices on Wednesday, after the Organization of the Petroleum Exporting Countries said in a announcement that a planned production reduction  was attainable.

Temporarily, sentiment on the U.S. greenback stayed delicate after a mixed batch of U.S. housing sector data released earlier in the session.

The U.S. Commerce Department said housing starts slumped 9.0% to 1.047 million units the previous month from August’s total of 1.150 million units, reviewed from the initial 1.142 million.

Analysts had anticipated an increase of 2.5% from the initial number to 1.175 million in August.

Temporarily,building permits increased  6.3% to 1.225 million units the previous month from 1.152 million in August. Economists had predicted a 0.9% increase to 1.165 million units in September.

Compared to the euro, the Canadian dollar was higher, with EUR/CAD is declining  0.53% to 1.4317.

On Additional News

On Thursday, the Australian dollar changed lower compared to its U.S. counterpart, following  the release of mixed Australian employment data, while the New Zealand dollar held steady ahead of U.S. economic reports  scheduled later in the day.

AUD/USD declined 0.70% to 0.7669, off the more than one month peak of 0.7734 hit suddenly.

On Thursday, the Australian Bureau of Statistic reported that in September, the number of working people declined by 9,800, disappointing expectations for an increase of 15,000.

The total of employed people drop by 8,600 in August, whose number  was revised from an earlier estimate of 3,900 slides.

The report also presented that Australia’s unemployment rate stayed unaffected at 5.6% the previous  month, compared to expectations for an increase of 5.7%.

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