The Canadian economy grew by 0.3% in October, better than market estimates. It was expected to slow down and grow by only 0.2% after enjoying a 0.3% growth rate in September. This is the first read for the fourth quarter.
USD/CAD was dropping towards the release, in tandem with general weakness in the greenback across the board. The pair dipped below 1.06.
At the same time, the US released the Core PCE Price Index, personal income and personal spending. There were no big surprises.
The Canadian dollar fell to a new three year low against the US dollar on weak figures released on Friday. Nevertheless, it is recovering very nicely.
Canada has a relatively low unemployment rate of 6.9%, but has a worryingly low inflation, something that the Bank of Canada expressed concern over.
Support appears at 1.0550, with resistance at 1.0660. For more, see the Canadian dollar forecast.
The Canadian dollar has been hit by a depressing forecast by Goldman Sachs. We will see how it acts in 2014.