The USD/CAD pair was closed at 1.37678 after placing a high of 1.38323 and a low of 1.37142. Overall the movement of USD/CAD remained flat throughout the day. The pair USD/CAD rose in the earlier session ahead GDP from Canada and U.S. economic data but dropped to monthly lows after the data released. Investors were cautious ahead of economic data release, and the pair started to rise and placed a high of 1.3823.
At 17:30 GMT, the GDP for March from Canada showed a 7.2% contraction, which was expected to contract by 9.0% and supported Canadian Dollar. The Raw Material Price Index RMPI for April was declined by 13.4% against the expected decline of 23.9% and supported the Canadian Dollar. However, the IPPI from Canada for April declined by 2.3% against the expected decline of 2.0% and weighed on Loonie.
The Core PCE Price Index declined by 0.4% from the expected decline of 0.3% from the U.S. The Goods Trade Balance showed a deficit of 69.7B against the expectations of 64.8B. Personal Income surged to 10.5% from the expected -7.0. The Prelim Wholesale Inventories also surged by 0.4% against the forecasted decline of -0.5% and weighed on the U.S. dollar.
The closely watched Chicago PMI dropped to 32.3 from 40.1 expected and the Consumer Confidence from the UoM dropped to 72.3 against the expected 73.7 and weighed on the U.S. dollar. However, the Revised UoM Inflation Expectations were reported as 3.2%.
Better than expected data from Canada gave strength to the Canadian Dollar and poor than expected data from the United States exerted negative pressure on the U.S. dollar. Strong CAD and weak USD dragged the pair to monthly lows near 1.371.
However, the pair started to move in the opposite direction on the back of crude oil prices, which struggled to build on Thursday's gains. WTI Crude Oil prices were down 0.6% at $33.40 per barrel, dragging the commodity-linked Loonie and stopping its daily gains.
Later in the day, the U.S. President, Donald Trump's announcement about China and WHO also affected the USD/CAD pair. Trump said that the U.S. will revoke its relationship with WHO and now will provide those funding to other nations.
Daily Technical Levels
Pivot Point: 1.3779
The USD/CAD pair is trading at 1.3715, following a selling bearish in the wake of weaker U.S. .dollar and stronger Canadian Dollar. The pair is facing immediate support around 1.3713, along with resistance around the 1.3875 area. On the lower side, the next support is likely to be found around 1.3585 level. The technical bias is mixed now, especially after the formation of a hammer candle on the 4-hour chart above 1.3710 support. Let's look for buying trades over 1.3710 level, and selling should also be preferred below the same. Good luck!