The dollar whipsawed but moved lower against the Loonie. U.S. Treasury yields moved higher following the Fed meeting minutes released on Wednesday. The U.S. services sector decellerated after hitting a record-high growth rate in November. The ISM Services Report purchasing managers index fell to 62.0 in December from 69.1 in November, below the 66.8 consensus forecast.
Technical Analysis
The USD/CAD whipsawed and moved lower. Resistance is seen near the 10-day moving average at 1.2750. Support is seen near the 50-day moving average at 1.2677. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in negative territory with a downward sloping trajectory which points to a lower exchange rate.
Canadian Goods Trade Balance Posts Surplus
Statistics Canada reported on Thursday the country in November posted a goods-trade surplus of 3.13 billion Canadian dollars. The consensus estimate was for a C$2.1 billion surplus. The November data marked the highest trade surplus since September 2008. Exports rose 3.8% in November to reach a record level of C$58.57 billion, while imports increased 2.4% to C$55.44 billion.