CAD Short-Term Downtrend SustainedCanadian Dollar Weakened by GDP Data, but USD Strengthens

A short-term downward trendline from October appears to have been strengthened by CAD. Prices were unable to break through resistance, keeping the recent downside focus in place. USD falls. A decline in the former’s economic output frequently means a decline in the latter’s effects.

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Technical Analysis of the Canadian Dollar h2close

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The USDCAD’s 0.7% gain on Tuesday was about 1.34 standard deviations from the mean on the daily chart. According to a cumulative distribution function, there is a 10% minimum chance that the CAD will decline by at least 0.7%. A softer print runs the risk of sending AUDm down from 0.1% given China’s difficult transition away from strict Covid lockdowns. In actuality, Canada’s growth slowed, making room for a Bank of Canada that was less aggressive.

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In terms of daily movements since the start of 2020, USDm in September was consistent with projections. The output for August, which was revised up to 0.3% mCAD, is closely inversely correlated with stock markets. It’s interesting that the strong performance of crude oil prices did not benefit the Canadian dollar.

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The most recent Canadian GDP data was broadcast at 13:30 GMT. 2.9% annualized quarterly growth was recorded, which was significantly higher than the result of 1.5%. GDP, however, was only 0.1%. Before cutting some of its losses, the S&P 500 was down at one point by about 0.6%. The chart below shows USD