In the 24 hours to 23:00 GMT, USD rose 3.54% against CAD and closed at 1.3504.
In its interest rate decision, the Bank of Canada (BoC) kept its key policy rate unchanged at 0.25%, as expected. The central bank also stated that the negative impact of the pandemic on the global economy has peaked, but expressed doubts about how the recovery will unfold. In addition, the central bank believes that Canada has avoided the worst-case scenario envisaged in April and upgraded its financial forecast for the second quarter of the year. Meanwhile, BoC had decided to reduce the frequency of its term repo operations and purchase of bank acceptance.
In the Asian session on GMT0300, the pair traded at 1.3512, with the USD trading 0.06% higher against CAD from yesterday’s close.
The couple is expected to find support at 1.3471, and a fall through may lead to the next support level of 1.3431. The pair is expected to find its first resistance of 1.3562, and an increase through it could lead to the next resistance level of 1.3613.
Looking ahead, traders would keep an eye on Canada’s April international merchandise, slated for release later today.
The currency pair shows convergence with its moving averages of 20 hours and 50 hours.