Canada housing starts weaker

The USDCAD is testing the 100 hour MA at the 1.4083 level as data on housing is comes in weaker at 173.0 K vs 212K last month. The estimate was for 200K.

Oil prices - which have helped contribute to the weak CAD - are trading below $33.00 per barrel ($32.87) but off the low. It is still down 0.87% for the day. The weaker data has led to a little move higher in the USDCAD after dipping a pip or two below the MA level. A move below the MA has additional support at the lows from last week (Friday low at 1.4056, Thursday at 1.4049, the Wednesday low at 1.4046). The 38.2% comes in at 1.4044. Lots of support. Above watch the 1.4107 level for some resistance

Trading activity is corrective today with the major trends from last week showing corrective action. The other commodity currencies - AUDUSD and NZDUSD - are moving higher on the day. The USDJPY is also recovering higher.

The NZDUSD - which fell below the 100 day MA on Friday for the first time since November 30th - has tested that MA in trading today t the 0.65777 level (see chart below).