USDCAD Overnight Range 1.2218-1.2294        

The US dollar has caught a bit of a bid in NY after being mostly offered overnight.EURUSD has dropped from 1.0710 to 1.0660 while USDJPY popped up from 119.25 to 119.75.  There hasn’t been any real catalyst for the moves and USDCAD has been rising in sympathy with the US dollar gains. Today’s weak Wholesale Prices data didn’t help, but that data series is usually ignored anyway.

In Asia, USDCAD climbed steadily, continuing the NYC afternoon trend on the back of both profit-taking and AUDUSD weakness. That move reversed itself when Europe came in.AUDUSD was sold on verbal intervention by the RBA governor, yesterday, in NYC, and by doveish RBA minutes that led to a May rate cut conclusion.Further debate ensued and in Europe, AUDUSD recovered all of its losses, post RBA minutes. News that the ECB was studying ways to reduce Emergency Liquidity Assistance (ELA) to Greek banks sent EURUSD tumbling.

USDCAD is in consolidative mode. For the moment, the pause in the oil price rally and general US dollar strength has offset bearish USDCAD technicals and a new and more neutral BoC. However, the move below the 1.2340-60 area was significant and likely to cap any USDCAD rallies.

USDCAD technical outlook

 The intraday USDCAD technicals are modestly bullish while trading above 1.2230 looking for a break above 1.2280 to extend gains to 1.2310 and then 1.2330.  A move below 1.2230, targets 1.2210 and 1.2160.  The longer term technicals are bearish while trading below 1.2340 looking for a retest of 1.2050.

Today’s Range 1.2240-1.2310