Canada reported a stronger than expected growth rate of 0.3%. It was expected to report GDP growth of 0.1% in the month of September after growing 0.3% in August. Year over year, a growth rate of 2.5% was predicted after 1.7% last month. Also here, the actual number is 2.7%, above expectations. This is the final report for Q3, which carried expectations of a 0.6% growth rate and the actual result was 0.7%.
Towards the publication, USD/CAD was dropping from the highs and traded at 1.0575. The pair is now trading lower, at 1.0560.
Canada is unique in publishing GDP on a monthly basis. The loonie was dropping together with other commodity currencies such as the Australian and New Zealand dollar. The positive result helps it recover after a tough week.
Some resistance was seen in at 1.06, with 1.0660 serving as critical resistance. 1.05 works as important support.
For more, see the USDCAD forecast.
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