Fundamentally, the USD/CAD hit fresh session low after data showed that Canada’s current account narrowed more than expected in the first quarter. The country’s current account deficit narrowed to C$12.4 billion in the first quarter and last months figure was revised to C$15.6 billion which gave strength to the Canadian dollar against its major counterparts except the Aussie. Analysts had expected Canada’s current account deficit to narrow to C$13.0 billion.
Elsewhere, reports showed that U.S. gross domestic product contracted 1.0% in the first quarter, after the preliminary estimate showed growth of 0.1% which weakened the greenback. Market expectations had been for a 0.5% contraction.
Technically,intra-day bias remains on the downside as a fresh cross of 21 and 55 EMA’s emerged on the 1 hour charts. Overall the general trend on the pair is on the downside, SSRC and OSMA is also showing a sign of bearish continuation in the pair. More supply to 1.08132 is expected. However a key economic indicator to watch out for tomorrow is the Canadian GDP which will determine whether more strength would be seen in the pair.