USDCAD Range 1.3229-1.3265
This morning’s US data dump did nothing to dissuade FX markets from sitting on their hands. The data was more or less mixed and will have little, if any, impact on Thursday’s US rate decision.
USDCAD was sidelined in overnight markets, content to hover around the 1.3250 area, even as other G-7 currencies were livelier.The RBA minutes were slightly doveish on China concerns. The news caused AUDUSD to be sold but it has since bounced from its lows. The Bank of Japan left policy unchanged but downgraded its outlook for exports and overseas economies. USDJPY dropped to 119.38 from 120.35. It is now 119.84.
The European session was a lot more subdued. EURUSD traded sideways and ignored mixed Eurozone data including the German ZEW.
China equity indices were lower which hurt Asian markets except the Nikkei. European Indices are mostly higher (except FTSE100). The Dow Jones Industrial Average, the S7P 500 and the NASDAQ are all higher as of 6:38 PST.
The Canadian dollar will remain at the mercy of general USD direction vs G-7 and oil.
USDCAD is in a minor downtrend while trading below 1.3270 but needs to break support at 1.3220 to put 1.3160 in play. A move above 1.3270 targets 1.3320.
The following is a weekly chart to put the current USDCAD move in perspective. In a nutshell, USDCAD is in a long term uptrend with the break of 1.3000 pointing to further gains to 1.4000
Today’s Range 1.3210-1.3270
Chart: USDCAD weekly with support and resistance noted