USDCAD Overnight Range 1.3068-1.3132      

Canada posted a truly ugly Merchandise Trade report this morning.The trade deficit widened to $2.5 billion in August with a sizeable decline in exports. USDCAD spiked to 1.3132 from 1.3092 on the news, but that move didn’t last and it quickly returned to pre-data levels.

It was a rather dull overnight session. The major event was the RBA interest rate decision.  Rates were left unchanged but the statement was not as doveish as expected.  AUDUSD rallied. USDJPY is awaiting the BoJ decision statement tonight. EURUSD drifted higher on the back of on-going equity gains.

The Trans Pacific Partnership deal was signed by Canada, the US and 11 more countries.  It is a big deal but for FX markets, not a factor, yet.

WTI oil prices have held on to most of yesterday’s gains fueled in part by news that Iran is struggling to ramp up oil production.  A Reuter’s story says that Iran’s crude sales are on track to hit the lowest in seven months.

USDCAD technical outlook

The intraday USDCAD downtrend from the end of September appears to have broken with the move above the 1.3080-90 area this morning which suggests further gains to 1.3200.  For today, USDCAD support is at 1.3060 and 1.3030.  Resistance is at 1.3230 and 1.3270

Today’s Range 1.3070-1.3130

Chart USDCAD 1 hour