THE TAKEAWAY:CAD New Housing Price Index (YoY) (MAY) > +1.8% versus +1.9% expected, from +2.0% > USDCAD BULLISH
Canada reported housing data at the same time that the US released worse than expected jobless claims data (+360K actual; +340K Bloomberg News survey expected; +344K prior revised up from +343K). Canadian data shows a slower than expected increase in new house prices during May: +1.8% y/y actual; +1.9% Bloomberg News survey expected.
Today’s housing data continues the downward momentum in new housing prices that has been present since March 2012. The supply side in the Canadian housing market does seem strong. On Tuesday, Canada reported +199.6K housing starts in June, higher than the Bloomberg News survey expected +187.5K starts.
USDCAD 1-minute Chart: July 11, 2013
Charts Created using Marketscope – prepared by Kevin Jin
The USDCAD moved slightly higher following the combination of US and Canadian data releases at 12:30 GMT (8:30 EDT on chart above). The price initially moved down roughly 10 pips but the pair rebounded. It is interesting that weakness in both US and Canadian data resulted in a move higher, although admittedly the reaction is fairly muted.
--- Written by Kevin Jin, DailyFX Research