Overnight Range 1.3198-1.3253
The US dollar lost a little more ground in an up and down overnight session.
Asia extended the bearish dollar bias. Japanese traders, fresh from Monday’s holiday drove USDJPY from 116.40 to 115.70. AUDUSD dipped on weaker than expected Retail Sales and NZDUSD see-sawed in narrow ranges
Action intensified when China released PPI and CPI data as Europe was starting their day. December CPI rose 2.1% y/y (forecast 2.3%) and PPI rose 5.5% y/y (forecast 4.5%). AUDUSD rallied from 0.7338-0.7388. USDJPY extended losses to 115.20
EURUSD jumped to 1.0625 from 1.0575 but the move didn’t last. Sentiment improved as the weaker dollar provided support to oil and Eurozone equities inched back into the green for the day.
There was almost a total absence of economic data releases from the Eurozone and with the US calendar looking rather bleak, FX price movements were more noise than substance
WTI oil prices bottomed out in Asia at $51.70/b and are now at yesterday’s closing level. The weaker US dollar and the proximity to the November uptrend line ($50.80) provided some support.
USDCAD tracked US dollar moves vs. the other majors while ignoring oil price moves
FX markets are in for a choppy New York session with prices stuck inside current ranges. There isn’t any US data of note until Friday when Retail Sales, PPI Michigan Consumer Confidence and Business Inventories get released. This mornings JOLTS report will not have any impact. Traders already know that the job market is strong so the data won’t offer anything fresh.
Close 4: pm EDT-Open 6:00 am EDT
USDCAD Technical outlook:
The intraday USDCAD technicals are bullish while prices are above 1.3210 looking for a break of 1.3280 to extend gains to 1.3320. Longer term, USDCAD is stuck in a broad 1.300-1.3600 trading band and the break below 1.3300 puts the currency pair closer to the bottom than to the top. The downtrend since the end of December remains intact while prices are below 1.3320 which will keep the focus on the 1.3000 area. For today, USDCAD support is at 1.3210 and 1.3180. Resistance is at 1.3260, 1.3290 and 1.3320
Today’s Range 1.3210-1.3290
Chart: USDCAD 4 hour