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The Canadian dollar managed to rise, shine and rise against the greenback, beating parity. But the huge mess following the announcement of a referendum in Greece sent USD/CAD back up.

Canadian GDP for the month of August came out better than expected: 0.3% instead of 0.2%. This joined a positive GDP report for July and shows a nicely growing Canadian economy in Q3 2011.

Also the American economy grew nicely in Q3 according to the initial report, and this helped the loonie keep up the fight.

But then came Greece: the announcement about a referendum regarding the EU Summit deal just boosted fear: the dollar and the yen rose across the board (despite the Japanese intervention, and all other currencies fell.

The Canadian dollar also dropped, despite its relative strength. USD/CAD confirmed the move above parity, broke the 1.0080 line and approached the 1.02 resistance line. It then stabilized in between these lines. Further resistance is at 1.0263, followed by 1.0360.

Fore more levels and upcoming events, see the Canadian dollar forecast.

Employment data, to be released on Friday, is the highlight of the remainder of the week. Also note the ongoing testaments of Mark Carney (governor of the BOC) in parliament.

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