USDCAD Overnight Range 1.2965-1.3035
US Retail Sales data missed forecasts and the US dollar declined against the majors with the exception of yen. However, the dip against the Canadian dollar was shallow and short lived. USDCAD dropped to 1.2965 from 1.2990 and then quickly reversed, rising to 1.3010. It has since settled back to where it was before the move.
The US dollar started the day in New York, down across the board, following an active overnight session. Kiwi gained the most and the Loonie was the laggard. That is still the case as a flock of doveish Fed speakers in recent days combined with concerns surrounding Chinese growth have pushed US rate hike guesses out to 2016.
Kiwi dipped on headlines misleading headlines from the RBNZ governor’s speech and then rallied the rest of the day. AUDUSD climbed on news of that a bank had raised variable rate mortgage rates by 20 bps. USDJPY dipped as US rate hike sentiment faded. GBPUSD climbed on a decline in the unemployment rate although a drop in wage growth capped the rally. EURUSD moved higher and broke resistance in the 1.1405-10 area while ignoring weak Industrial Production data.
USDCAD will continue to track oil prices especially since there isn’t any Canadian data available.
USDCAD technical outlook
The intraday USDCAD technicals are bullish while trading above 1.2960 looking for a break of resistance at 1.3070 to extend gains 1.3170. A move below 1.2960 points to additional losses to 1.2900. For today, USDCAD support is at 1.2960, 1.2940 and 1.2910. Resistance is at 1.3010, 1.3040 and 1.3070
Today’s Range 1.2960-1.3030
Chart USDCAD 1 hour with trading range noted