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Another day brought another piece of good economic news from Canada: the first GDP figure for 2013 came out better than expected: the economy grew by 0.2%, contrary to 0.1% that was expected.USD CAD Hovering Over Support After Better than expected GDP figures March 28 2013

However, the trough of 1.0150 that USD/CAD reached after the strong inflation figures was only temporarily breached, but the break proved false so far.

The Canadian economy squeezed by 0.2% in December. Canada is unique with its monthly GDP releases. In this case, the publication provides a first glimpse on Q1.

In addition, the Raw Materials Price Index also rose more than expected: 2.2% instead of 1.9% and the  Industrial Product Price Index rose by 1.4%, more than 0.6% predicted.

The rises in prices are in line with the big leap in consumer prices published yesterday.

The US reported disappointing figures at the same time: jobless claims rose to 357K and final GDP for Q4 was slightly lower than expected.

If this line is finally breached, further support appears at 1.01, followed by 1.0066 the obvious line of USD/CAD parity. On the topside, 1.02 serves as resistance. For more levels and analysis, see the USDCAD forecast.