The Canadian dollar has had weak gains in Tuesday’s trading. Early in the North American session, the USD / CAD is trading at 1.3186, down 0.23% on the day.
American consumer confidence slips
The US consumer continued to tighten the purse strings in July. The conference board’s indicator of consumer confidence fell in another even month and fell to 84.8. This was down from 91.7 a month earlier and missed the estimate of 93.0. There was also some positive news. The Richmond Manufacturing Index accelerated in a fifth consecutive month and rose from 10 to 18. In the construction sector, sales of new homes rose to 901 thousand, rising sharply from 776 thousand in advance.
In Canada, corporate profits fell 8.0% in the second quarter, a clear improvement from the drop of -38.4% in the first quarter. The Canadian economy has shown signs of recovery, such as an improved labor market. Investors will keep an eye on Canada’s GDP, which will be released on Friday. GDP is expected to be 5.2% in June after a gain of 4.5% in the May release.
USD / CAD technical
- 1.3258 is the next resistance line. It was tested last week. This is followed by resistance at 1.3299
- 1.3155 is the first support line. The next aid is 1.3093, which has been held since January
- The 10-day MA line puts downward pressure on the pair. If USD / CAD breaks below this line, it is a bearish sign for the pair