USDCAD inched higher in early New York trading, supported by the mix of US rate hike concerns amid doveish Bank of Canada policy. StatsCanada announced that the Canada’s Trade balance was the third consecutive trade surplus. It widened to $807 million, beating the forecast of $700 million.
The US Trade deficit was $48.5 billion, as expected.
USDCAD opened in New York with a modest bid tone and the currency pair inched higher after the news.
It was a quiet session overnight. The FX majors jockeyed for position inside well-defined ranges and by the time New York started the day, the greenback was almost unchanged from the previous close. The biggest losers were Sterling and the Swiss Franc.
GBPUSD was under pressure as Europe opened. GBPUSD declined from 1.2252 to 1.2184. Sterling traders were unhappy with a drop in Halifax House Prices in February (5.1%, 3 month, year over year) in addition to Brexit concerns.
EURUSD traded sideways with traders sidelined ahead of Thursday’s ECB meeting but unable to sustain gains above 1.0600. Eurozone Q4 GDP was 1.7%, year over year, which was expected and a non-factor for traders.
USDJPY chopped around in a 113.73-114.06 range and it is trading at the peak in New York trading
The Australian dollar eked out a small gain following the Reserve Bank of Australia policy statement. The RBA cited improving global economic conditions in a fairly upbeat assessment of the domestic economy.
The New Zealand dollar didn’t fare so well. NZDUSD declined on bearish technicals, US interest rate outlook and expectations for a weak Global Dairy Trade Auction.
WTI oil prices are torn between an abundance of supply and hopes that Opec cuts will address the issue. The recent $52.50-$53.75 range remains intact and prices are close to the top in New York trading.
USDCAD Technical outlook:
USDCAD is in a modest uptrend channel inside the 1.3360-1.3435 range that has been intact since March 2. A break above 1.3440 targets 1.3480 and then 1.3600. A move below 1.3360 will lead down to 1.3310 and then 1.3260. For today, USDCAD support is at 1.3360 and 1.3320. Resistance is at 1.3420, 1.3440 and 1.3480.
Today’s Range 1.3370-1.3340
Chart: USDCAD 2 hour
USDMXN is consolidating recent losses with a 19.3350-19.6500 range and is currently pressing the bottom of that band. A break below 19.3350 could extend losses to 18.1175, a level last seen before Trump became President.
Chart: USDMXN daily