COZforex: The USD was almost unchanged against its Canadian counterpart on Wednesday, after the release of disappointing U.S. economic data, while signs of progress in tackling the euro zone's debt crisis continued to support sentiment.

USD/CAD hit 0.9911 during early U.S. trade, the currency pair's lowest since November 29; the currency pair subsequently consolidated at 0.9930, inching up 0.03%.

Investor confidence weakened after data showed that ADP nonfarm payrolls in the U.S. rise by a seasonally adjusted 118,000 in November, below predictions for an increase of 125,000. The previous month’s figure was revised down to a gain of 157,000 from a previously reported increase of 158,000.

Separately, light sweet crude futures for delivery in January traded at USD88.37 a barrel on the New York Mercantile Exchange, slipping 0.15%. Raw materials, including oil account for about half of Canada’s export revenue.

But sentiment remained supported after Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion. Also Wednesday, Spain raised EUR4.3 billion at an auction of government debt, falling short of the target of EUR4.5 billion.

Later in the day, the Institute of Supply Management was to produce a report on U.S. service sector activity.

Coz forex senior derivatives trader Daniel • Moloney said, USD/CAD is predicted to find its first resistance at 0.9943, and a rose through could take it to the next resistance line of 0.9967. Also, the pair is predicted to find support at 0.9905, and a fell through could take it to the next support line of 0.9891.

Daniel • Moloney said USD/CAD is trading below its 20 Hr and 50 Hr moving averages. (COZ forex UK)


COZ forex Chart:

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