The Canadian economy grew by 0.2% in March. GDP was expected to grow by 0.1% after a nice rise of 0.3% in February. This publication concludes the first quarter of 2013. The annualized growth rate of Canada is 2.5%, better than 2.3% that was expected.
USD/CAD was trading lower towards the release, at around 1.0330. It had already fallen to lower ground beforehand. This strength sends USD/CAD towards support at 1.03. It could be broken soon.
End of month flows are quite mad, to say the least. We have seen some erratic moves in EUR/USD, AUD/USD and USD/JPY earlier.
In the US, economic indicators disappointed, with the drop in personal spending being the biggest disappointment: it fell by 0.2% instead of rising by the same scale.
1.03 provides support. Resistance is at 1.0360, followed by the new peak of 1.0420.
For more levels and analysis, see the Canadian dollar forecast. Live Dollar/CAD chart:[do action=”tradingviews” pair=”USDCAD” interval=”60″/]