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Forex: USD/CAD extends weekly drop after US confidence

FXstreet.com (Barcelona) - Following the 20-pip rise to the daily high printed at 1.0214 on the US GDP Q1, the USD/CAD failed to hold above its opening price and is in decline below the 1.0200 psychological level after the US Reuters/Michigan consumer sentiment just released. The cross spiked down to 1.0174 low after the surprising rise from 72.3 to 76.4 in April, beating the market consensus of 73.2.

Annualized data had a big improvement from Q4, from 0.4% to 2.5% growth, but came in lower than market consensus of 3.0%. GDP price also failed to meet expectations: up from 1.0% to 1.2%, below 1.4% consensus. The US economic calendar also presented flash Personal Consumption Expenditures, which rising pace eased from 1.6% to 0.9% (consensus of 1.1%) in Q1 (QoQ), and its Core data, that rose from 1.0% to 1.2% as expected. Consumer spending and imports rose 3.2% and 5.4%, respectively. US Reuters/Michigan consumer sentiment is due shortly and is expected to rise from 72.3 to 73.2 in April.

“Hourly supports are now at 1.0182 (intraday low) and 1.0164 (61.8% retracement)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, pointing to resistances at 1.0245 (intraday high) and 1.0285 (19/03/2013 high).

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