USDCAD Overnight Range 1.3509-1.3585
The Canadian dollar is the best performing G-10 currency, so far, this morning. It is essentially flat. This mornings Canadian data, (Current Account, Raw Materials and Industrial Production) was a twitch better-than forecast, but ignored by FX traders.
The US dollar is feeling rather frisky this morning after beating up Kiwi in Asian. NZDUSD is down over 2.1% so far today on weak building permits data and a drop in Business confidence. At least one New Zealand bank has moved it’s rate cut forecast forward to April.
The G20 ended without any plans for coordinated stimulus action and noted that if Britain exited the EU, it could pose a risk for the world economy.
The Peoples Bank of China (PBOC) announced a 50 bp reduction in the Required Reserve Ration (RRR) and USDCNY was fixed higher, which wasn’t a total surprise as the PBOC governor hinted at stimulus last week.
AUDUSD rallied on the PBOC news but headed lower in Europe. USDJPY drifted lower throughout the Asia and European sessions. March is fiscal year end in Japan which usually makes USDJPY trade erratically due to repatriation flows.
EURUSD punched below support in the 1.0900 area, undermined by a weaker-than expected EU inflation report. (Feb. CPI Actual -0.2% vs. forecast 0%, y/y, Core CPI 0.7% vs. forecast 0.9%, y/y). GBPUSD sank on continued Brexit fears
USDCAD technical outlook
The intraday USDCAD technicals are bearish. USDCAD is in a declining channel from Jan.25 bound by 1.3475 on the bottom and 1.3875 on the top. Last weeks break below support at 1.3660 will act as resistance. For today, a break above 1.3580 would target 1.3660 while a move below 1.3475 targets 1.3440.
Forecast Range for the day 1.3490-1.3570
Chart USDCAD 4 hour