USDCAD Overnight Range 1.2440-1.2500
This morning’s ISM manufacturing report put the brakes on a steadily slipping US dollar during the early New York session. Unfortunately, the reaction is more noise than music evidenced by the fact that the recent ranges are still intact. (EURUSD 1.0860-1.1000, GBPUSD 1.5200-1.5300, USDJPY 1.2360-1.2460)
Overnight, the month started with a modest bid for US dollars against the majors (except JPY and NZD) as the very modestly improving US data refocused traders on the Fed’s interest rate intentions. AUDUSD traders were nervous ahead of Tuesday’s RBA meeting while USDJPY drifted higher in a thin market due to a holiday in Singapore. In Europe, negative Greece headlines ahead of an IMF payment on Friday weighed on EURUSD, which ignored “ok” PMI data. GBPUSD traded lower and a weak UK PMI number contributed to the move.
IMM positioning data for the Canadian dollar shows speculative positions are now long CAD/short USD (although very small) a clear indication that traders don’t have any view of USDCAD at the moment.
This week should be entertaining. AUDUSD traders have the RBA meeting to look forward to tomorrow while Wednesday’s ECB meeting will captivate EUR traders and Friday’s US nonfarm payrolls report caps the week.
USDCAD technical outlook
The intraday USDCAD technicals are bullish while trading above 1.2450 looking for a break of resistance at 1.2530 to extend gains to 1.2560. A move below support at 1.2460 would lead to 1.2410. For today, USDCAD support is at 1.2460 and 1.2440. Resistance is at 1.2530 and 1.2560
Today’s Range 1.2470-1.2550
Chart: USDCAD 1 hour with uptrend and resistance