USDCAD Range 1.3227-1.3262
FX markets started this FOMC week with a collective yawn. Sure there was some itching and scratching but for the most part, G-10 currencies stayed closed to home.
Asia started the week nervously with another batch of data from China. It was mixed-Retail Sales rose while Industrial Production slipped. Chinese equity indices closed in the red. Australia added a little political intrigue to their markets with news that PM Tony Abbott called a leadership vote after finding a few knives in his back. That proved to be a bad decision on his part. A few hours later he lost a leadership vote and Malcolm Turnbull became the new Prime Minister of Australia.
Europe was a snoozefest. EURUSD attempted a move higher. It failed and the single currency traded sideways for the rest of the morning.
USDCAD is still trading with a bullish bias, undermined by the negative outlook for oil. There isn’t any US or Canadian data today leaving the Loonie vulnerable to both WTI price movements and equity price direction. In addition, Thursday’s FOMC decision will keep traders sidelined.
USDCAD is in a minor uptrend above 1.3225 within the context of the 1.3160-1.3360 trading band. A break above 1.3280 risks 1.3350 while a move below 1.3225 targets 1.3150.
Today’s Range 1.3210-1.3290
Chart: USDCAD 30 minute with proposed trading range highlighted