USDCAD Overnight Range 1.4121-1.4326
USDCAD recouped all of its overnight losses, and then some in early New York trading when oil prices completely reversed their overnight slide. WTI has climbed from an overnight low of $29.25/b to $30.86 where it is sitting as of 9:10 am. This mornings US Case Shiller Home price data was modestly stronger-than-expected but did not have much of an impact on FX markets.
Overnight, USDCAD climbed in Asia as oil prices declined in a risk averse market with worse liquidity than usual due to the Australian Day holiday. China stocks collapsed again. The SHCOMP shed 6.42% which spooked equity traders throughout Asia. European traders appeared less concerned and Dow futures are in the green at the moment.
European FX traders appear bored with China equity market volatility. The Asia moves were reversed in a low volume session. Traders are content to bide their time and await the results of tomorrow’s FOMC meeting.
It appears that US markets will ignore the China equity meltdown as futures are pointing higher. The reality that all market movements will just be “noise” until the FOMC statement is released tomorrow at 11:00am PST.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.4340 with the move below 1.4240 supporting further losses. USDCAD is currently probing minor support in the 1.4130 level and if it is broken, opens up further losses to the 1.4000-40 area. For today, USDCAD support is at 1.4120, 1.4090 and 1.4140. Resistance is at 1.4220 and 1.4250
Today’s Range 1.4080-1.4180
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