CAD Building Permits Preview: what’s expected of USD/CAD

By FXStreet FXStreet (Edinburgh) – The Canadian housing sector will be the in the limelight today, as Building Permits and Housing Starts are due later in the NA session. Consensus expects Housing Starts to have increased at a seasonally adjusted pace of 198.7K on a year to November, while Building Permits are seen gaining 3.2% from September to October, reverting the previous 6.7% contraction.

Further strengthening of the Canadian housing sector will lend some support to CAD, although any result today is expected to be short-lived ad crude oil dynamics and the BoC stance remain the main drivers behind the pair’s price action.

In the FX space, USD/CAD keeps pushing higher above the 1.3500 handle, posting highs in levels last seen over a decade ago. In terms of resistance levels, there are practically no relevant hurdles until the 1.4001 level – monthly high May 2004. On the opposite direction, the initial support aligns at 1.3216, where sits the 55-day sma, followed by the 1.3149 (7-month uptrend).
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Source:: FX Street