Overnight Range   1.2853-1.2916                

USDCAD is back to where it closed after losing ground in the Asia and European sessions on better than expected China Trade data.  This mornings weak Canadian Capacity Utilization and Building Permits data powered the rebound.

The impact from the massive, 12.08-million-barrel drawdown in crude inventories as reported by the American Petroleum Institute (API) last night, diminished ahead of the EIA Crude Stocks Change report at 1600 GMT.  If it validates the API report, the Loonie and WTI are in for additional gains.  USDCAD was also undermined by better than expected China Trade data.

Overnight, better China Trade data gave AUDUSD a boost, making it the best performing G10 currency.  USDJPY traded sideways and the Nikkei traded lower.

The ECB left policy unchanged but warned that QE purchases could extend past March 2017 which gave EURUSD a boost.

USDCAD technical outlook.

The intraday USDCAD technicals are bullish. The break above the 1.2880 level snapped the intraday downtrend and suggests a retest of the 1.3000-50 pivot area is in order.  A break of 1.2930 would re-target 1.3050.  For today, USDCAD support is at 1.2850 1.2820.  Resistance is at 1.2930, 1.2980 and 1.3020

Today’s Range 1.2850-1.2930