US dollar remained almost unchanged against its Canadian peer on Tuesday, after the release of stronger than expected US durable goods and house prices data, which gave indication that economic recovery was on the way.
USD/CAD hit a session low at 1.0461 at 11:35 GMT, after which consolidation followed at 1.0503. The pair was up by a mere 0.04% for the day. Support was likely to be received at current session low, while resistance was to be met at June 24th high and almost 20-month high, 1.0554.
US Department of Commerce reported earlier on Tuesday, that Durable Goods Orders in the United States rose by 3.6% in May, exceeding forecasts of a 3.0% increase rate, and confirming the rate, registered during April. Durable Goods Orders ex Transportation recorded a 0.7% increase in May, above expectations that the indicator will remain unchanged, while in April it was revised up to 1.7% from 1.3% previously. Durable Goods Orders ex Defense added 3.5% in May, also above projections of a 2.7% rise.
Additionally, S&P/Case-Shiller Composite-20 Home Price Index in US registered a 12.05% jump in April on annual basis, as this was the sharpest rate of increase since the beginning of statistical research. Expectations of a 10.60% rise were exceeded. In April the average price per home in the United States was close to levels, recorded back in 2004, but still 26% below the peak level in 2006. Record low interest rates and decreased supply of homes, considering also the improving US economy, contributed to the gradual housing market recovery in the country.
The greenback was weaker earlier in the trade session, after officials from the Federal Reserve Bank played down market concerns over prospects of an exit to the central bank’s monthly asset purchases. The president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, said on Monday that the central bank will stick to the course of continuing its bond purchases, until US unemployment rate was to decrease further. At the same time, Dallas Fed President Richard Fisher said, that investors should not overreact to US central bank’s plans of slowing down the pace of bond purchases.
Canadian dollar was fractionally higher versus the euro, as EUR/CAD cross erased 0.07% to reach 1.3763.
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