Canada’s economy was expected to grow at a rate of 0.3% in July, the first month of Q3. Canada is unique in publishing monthly GDP estimates. Year over year, the economy advanced by 1.3%, also beyond expectations of 1%. Producer prices missed expectations, but they play second fiddle to the GDP data.
USD/CAD is falling below support, trading at 1.3127, under 1.3140 that supported the pair. Further cushioning awaits at 1.3080, followed by 1.30. The pair neared 1.32 earlier in the day.
The Canadian dollar took advantage of the surprising OPEC deal earlier in the week. Later on, holes were poked about the seriousness of the agreement, and the loonie lost some ground. But now, with a boost from domestic data, perhaps there is room for advances, with another attempt of Dollar/CAD to approach 1.30.
More: USD/CAD To Test 1.30 N-Term – BNPP
Here is how the move looks on the chart. The Canadian dollar ignores some positive US figures which released exactly at the same time. The Canadian economy has shown, at least for now, that it is more diverse than only oil.Get the 5 most predictable currency pairs