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Forex: USD/CAD off 1.0133 low, bounce stalled at 1.0150

FXstreet.com (Barcelona) - The USD/CAD is extending the downside seen since April 24 after closing below 1.0200 last week. Today’s drop has reached as low as 1.0133, but the market bounced to test 1.0150. At the moment of writing, the USD/CAD is down at 1.0143 (-0.29% on the day).

The National Association of Realtors indicated that US pending home sales beat market consensus at 1.5% (MoM) in March, instead of the 1.0% expected. Annualized data came in at 7.0%, above 6.1% consensus but not as high as last year’s figure of 8.4%.

US Core income disappointed at 0.2% in March, instead of 0.4%, and spending rose 0.2%, instead of 0.0% expected. The price of personal consumption expenditures fell -0.1% (MoM) to an annualized drop from 1.3% to 1.0%, as expected. Core prices came in at 0.0% (MoM) to an annualized drop from 1.3% to 1.1%, below consensus of 0.1% and 1.2%, respectively.

“Even with USD/CAD dropping back to the low 1.01 area, the lowest since the sharp advance in funds two weeks ago (reflecting the broader trend in risk aversion amid the uncertainty caused by the Boston bombing), the CAD is still lagging somewhat”, wrote TD Securities analysts, expecting little real directional movement in the CAD until key events, such as the ISM and employment data from the US, the FOMC and ECB policy meetings.

“A test of the support area between 1.0102 and 1.0084 is expected. Hourly resistances can be found at 1.0176 (intraday high) and 1.0214 (26/04/2013 high)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet.

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