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USD/CAD falls to 3-week low as loonie strengthens

FXStreet (Córdoba) - USD/CAD fell to a 3-week low as the loonie strengthened after the People’s Bank of China decided to cut interest rates to lift the economy.

USD/CAD dropped more than 60 pips on the news and hit a low of 1.1256, last seen Oct 31. At time of writing, the pair is trading at 1.1275, 0.24% below its opening price. Canada Oct inflation data will be release at 13:30 GMT, with consensus pointing to a 0.2% decline MoM and a 2.1% rise YoY.

USD/CAD technical levels

As for technical levels, USD/CAD could find immediate supports at 1.1256 (Nov 21 low), 1.1213 (50-day SMA) and 1.1200 (psychological levels). On the other hand, resistances are seen at 1.1307 (20-day SMA), 1.1325 (Nov 21 high) and 1.1368 (Nov 20 high).

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