CAD Canadian dollar - Canadian inflation hits 31-year high in April

Canadian inflation hits 31-year high in April

Canada's annual rate of inflation accelerated again in April, slightly above analysts' expectations, mainly driven by higher food and housing prices, Statistics Canada data showed on Wednesday. Headline inflation hit 6.8% in April, slightly above analysts' forecast for an annualized rate of 6.7% and close to the 6.9% reached in January 1991. It was the 13th consecutive month above the Bank of Canada's 1-3% control range. The Bank of Canada's common gauge of the economy's performance, the CPI, rose to 3.2 percent from an upwardly revised 3.0 percent in March, also above analysts' forecast of 2.9 percent.

Since the USD/CAD encountered resistance in the 1.30 area last week, it has seen repeated declines. At the same time, it has also driven the RSI and stochastic index to fall. The current 25-day average is at the 1.28 level. The current exchange rate has approached this area. If it breaks further , is expected to intensify the selling pressure on the US dollar against the Canadian dollar. Larger support is expected at 1.2680 at the 100-day moving average and 1.26 at the 250-day moving average, with the next level at 1.24. The resistance continues to focus on the 1.30 mark, and the larger resistance is expected to be at the 1.32 level.

Estimated volatility:
Resistance 1.3000** - 1.3200
Support 1.2800 - 1.2600 - 1.2400

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