China's Economic Data Has No Impact, USD/CAD Waits for Canada's Inflation Data
Crude oil commodity trading was mixed today following market reaction to published Chinese data showing weak economic growth for the final quarter of 2022.This dampens the prospect of demand for the black gold and will also affect the movement of the Canadian dollar, which is sensitive to the oil market.The Canadian dollar is also seen to be driven by the release of Canadian consumer price index (CPI) data in the New York session tonight which will be the focus of the central bank.A drop in the inflation rate could prompt the Bank of Canada (BOC) to continue to slow down the tightening of monetary policy while increasing pressure on the Loonie currency in the market.If you look at the price movement on the chart of the USD/CAD currency pair, the flat price from last week continued into this week after falling below the 1.35000 zone earlier.Today's price is slowly leveling off in the 1.34000 zone with investors still waiting for a clearer signal for further price direction.The price moving above the Moving Average 50 (MA50) support level is an early signal of a bullish trend movement, but it is still early for investors to judge.If a surge occurs, the price is seen to test resistance at the SBR (support become resistance) zone at 1.35000.If successfully passed, the price will continue to rise higher towards the height zone at 1.36600 which was reached at the beginning of January.However, in the event of a price plunge, the decline will be directed to the support zone at 1.33000 which was almost reached last week.A move lower will mark a recent 9-week low with the next focus zone at 1.32000.
Crude oil commodity trading was mixed today following market reaction to published Chinese data showing weak economic growth for the final quarter of 2022.
This dampens the prospect of demand for the black gold and will also affect the movement of the Canadian dollar, which is sensitive to the oil market.
The Canadian dollar is also seen to be driven by the release of Canadian consumer price index (CPI) data in the New York session tonight which will be the focus of the central bank.
A drop in the inflation rate could prompt the Bank of Canada (BOC) to continue to slow down the tightening of monetary policy while increasing pressure on the Loonie currency in the market.
If you look at the price movement on the chart of the USD/CAD currency pair, the flat price from last week continued into this week after falling below the 1.35000 zone earlier.
Today's price is slowly leveling off in the 1.34000 zone with investors still waiting for a clearer signal for further price direction.
The price moving above the Moving Average 50 (MA50) support level is an early signal of a bullish trend movement, but it is still early for investors to judge.
If a surge occurs, the price is seen to test resistance at the SBR (support become resistance) zone at 1.35000.
If successfully passed, the price will continue to rise higher towards the height zone at 1.36600 which was reached at the beginning of January.
However, in the event of a price plunge, the decline will be directed to the support zone at 1.33000 which was almost reached last week.
A move lower will mark a recent 9-week low with the next focus zone at 1.32000.
