USDCAD Overnight Range 1.2976-1.3019
USDCAD failed to extend yesterday’s losses in another dull overnight FX session, undermined, in part, by soft oil prices due to rising crude inventories in the US. This morning, USDCAD started the day with a bid and it hasn’t look back. The first test of the day at 1.3020 has held but bearish economic sentiment and soft oil prices suggest that it is only a matter of time before we are probing 1.3050.
Yesterday, the federal Finance Minister, Joe Oliver, trolling for votes in a pre-election vote buying speech, said that “this feels like a period of slower growth, but not a period of contraction”. (The PC party may feel a period of contraction on Election Day when the lose their majority) USDCAD traders are looking ahead to tomorrows May Retail Sales data (0.5% m/m) to provide direction. I believe that any gains from an upside surprise will be limited and short lived.
Overnight, AUDUSD was the star of the show in Asia. Australia CPI was as expected but a speech by the RBA Governor, Stevens, wasn’t. AUDUSD traders were short, expecting doveish remarks and were disappointed. AUDUSD rallied on the news. In Europe, the Bank of England minutes were the highlight of the session. As highlights go, they weren’t.
The USDCAD intraday technicals are bullish while trading above 1.2900 looking for another test (and break) of the 1.3020 area to extend gains to 1.3050. A failure at the top implies further 1.2920-1.3020 consolidation. For today, USD support is at 1.2950 and 1.2920. Resistance is at 1.2990, 1.3020 and 1.3050
Today’s Range 1.2960-1.3020
Chart: USDCAD 30 minute with support and resistance shown