USDCAD Overnight Range 1.3257-1.3331
The September quarter–end is over and the Loonie is in demand. Actually, it’s the commodity bloc that is in demand as both AUDUSD and NZDUSD have rallied. This morning’s US Jobless Claims data was close enough to expectations so it had little impact
The Loonie gains are, in part, due to the unwinding of long dollar positions established on anticipation of USDCAD demand for portfolio rebalancing. In addition, China PMI data was slightly better than expected which helped global growth sentiment. Relatively firm WTI prices and an improvement in Canadian GDP also supported the Loonie’s gains.
The gains may not last. Saudi Arabia may cut crude prices to Asia, in November, according to a Reuter’s story, in an effort to maintain market share.
The European and Asian sessions were fairly subdued. China was closed for National day and will be closed on Friday as well. The Japan Tankan Survey was in line with expectations and the Nikkei rallied European PMI’s were ignored and EURUSD was stuck in a range.
USDCAD technical outlook
USDCAD technicals are bearish following the move below 1.3310 which is targeting further losses to the 1.3210-30 area. A move below this level sets up a deeper correction to 1.3180. A move above 1.3310 would suggest further 1.3250-1.3350 consolidation. The short term uptrend from June remains intact above 1.3190.
Today’s Range 1.3230-1.3310
Chart USDCAD hourly.