USDCAD, H1
U.S. durable goods orders rebounded 3.1% in February after dropping a revised 3.5% in January (was -3.6%). Transportation orders climbed 7.1% versus -9.8% (revised from -10.0%), and were up 1.2% excluding transportation from a 0.2% decline (revised from -0.3%). Nondefense capital goods orders excluding aircraft surged 1.8% from -0.4% (revised from -0.2%). Shipments increased 0.9% following a 0.5% gain previously (revised from 0.2%). Nondefense capital goods shipments excluding aircraft were up 1.4% after edging up 0.1% (revised from -0.1%). Inventories rose 0.4% after the 0.4% January gain (revised from 0.3%). This looks like a solid report that recoups the January weakness.
At the same time with the US data, Canada ‘s Retails Sales and CPI released as well . The Canada’s CPI grew 0.6% in February (m/m, nsa) after the 0.7% gain in January. The CPI jumped to a 2.1% y/y growth rate after the 1.7% y/y clip in January. The month comparable gain and the annual growth rate came in above expectations, but the risks for this report were to the upside. The core measures were also firmer: the CPI-trim grew 2.1% y/y in February after the 1.8% growth pace in January.Meanwhile, Canada retail sales expanded 0.3% in January(m/m, sa) after a revised 0.7% drop in December (was -0.8%).
The dollar edged slightly higher after the better durable orders outcome, taking USDJPY to 105.22 from under 105.15, and EURUSD to 1.2346 from 1.2355. Oppositely, US dollar presented a strong weakness against Canadian dollar with USDCAD drifting to 1.2834 from 1.2920. The pair manage to break the immediate support at 1.2856. Hence the next intra-day support levels come at 1.2820 (latest swing low), 1.2800 (March low and round level) and 1.2783 (S2 from PP analysis).
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Andria Pichidi
Market Analyst
HotForex
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