USDCAD Overnight Range 1.1935-1.2025
It was another stellar US Jobless Claims print (264k) which beat the forecast by 11,000 but nervous traders also noted the decline in PPI data and tempered their dollar buying enthusiasm. The Bank of Canada review is due later today and it would be a stretch to assume that it will be all sunshine and unicorns, which should provide some support to USDCAD. GBPCAD and EURCAD demand have also acted as a drag on USDCAD selling
Yesterday’s US Retail Sales report kicked the stuffing out of the US dollar but the New Zealand Retail Sales had the opposite effect during the Asia session. Kiwi retail Sales rose 2.7% vs expectations of 1.6% and the flightless bird grew wings. AUDUSD was dragged higher as well.
The European session was subdued with FX trading hampered by Ascension Day holiday’s in many countries.
Looking ahead, news that Iran is getting trigger happy and shooting at a Singapore flagged ship may lead to a re-think of some short term US dollar bearish bets and provide some support to the US dollar.
USDCAD technical outlook
The intraday USDCAD technicals are modestly bullish following the break of 1.1935, representing the downtrend line from Tuesday. Additional gains above 1.2020 will suggest that a short term bottom is in place. USDCAD selling below 1.1930 will target 1.1890 and then 1.1835. For today, USDCAD support is at 1.1930 and 1.1890. Resistance is at 1.1980 and 1.2020
Today’s Range 1.1930-1.1980
Chart: USDCAD 1 hour with downtrend