The USDCAD has edged lower yesterday, as the pair trades in the near support of a channel and a Fibonacci expansion at 1.0723. On the release front, US GDP took a tumble in Q1, while manufacturing data softened in May. There are no Canadian releases until Friday.
The markets were braced for a decline of 1.8%, but the indicator shocked with a much sharper drop of 2.9%. There was more bad news to follow, as Core Durable Goods Orders declined by 0.1%, its first decline in five months.
The estimate stood at 0.3%. Durable Goods Orders looked even worse, coming in at -1.0%, shy of the estimate of -0.1%. Traders should be prepared for the US dollar’s major rivals to gain ground after such a weak GDP release.
Expecting downward move to 1.60 on a break of below previous day low at 1.07116 (scenario 1) or a break above previous day high at 1.0751 could throw price to short-term top at 1.0814 (scenario 2).