The Canadian dollar has edged higher in the Wednesday session on the back of U.S. equities taking a beating as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street. The Dow Jones industrial average dropped more than 800 points to 25,598.74, its steepest decline since March.
On the local data front yesterday, Canadian Building Permits gained 0.4%, shy of the estimate of 0.5%. Canadian municipalities issued $8.1 billion worth of building permits in August, up 0.4% from July. Strength in the non-residential sector drove the increase, while the residential sector declined for the third consecutive month.
From a technical perspective, the USD/CAD pair is currently trading at 1.3051. We continue to expect support to hold on moves approaching 1.2950 while now any upward push will likely meet resistance around 1.3108.