USDCAD Range 1.3082-1.3120    

USDCAD snapped an overnight drift higher when healthy US housing starts data was released. US housing starts beat expectations (Actual 1.206 mio vs Forecast 1.180 mio) and in the absence of any other data traders concluded that anything pointing to a recovering US economy was good for the Loonie as well.

In Asia, the release of the RBA minutes got all the attention, at least for a few minutes, before traders quickly concluded that they provided nothing new.  NZDUSD got some support on a report that dairy giant Fonterra expected the CNY devaluation to boost prices. News that Russia would allow some N.Z, daily imports again, also helped. Meanwhile, Chinese equity markets were down sharply, spreading unease into Europe.

Sterling shone in Europe on a higher than expected inflation print, re-opening the dialogue for the possibility of UK rate hikes.

It should be another slow day in FX land as traders await the release of the FOMC minutes on Wednesday afternoon.

Technical Outlook

The intraday technicals are bearish following the break of minor support at 1.3130 with a move below 1.3100 likely to extend losses to 1.3060. A rally back above 1.3140 puts 1.3180 in play.

Today’s Range 1.3060-1.3130

Chart: USDCAD 30 minute with downtrend and support shown