USDCAD Open (6:00 am EDT) 1.3411-14 Overnight Range 1.3406-1.3417
The US dollar is steady, holding on to Friday’s gains, after an uneventful overnight session. The major G-10 currencies opened in New York mostly unchanged compared to Friday’s close.
Markets went cross-eyed watching developments in Hong Kong and worrying about the FOMC meeting on Wednesday and traders sat on their hands. In Hong Kong, millions of demonstrators flooded the streets again, in protest of a new extradition policy with China which has since been delayed. Toronto is expected to see a similar horde of people in its downtown streets this morning. They are there for the NBA Champion Raptor’s parade. Prime Minister Trudeau will be on hand to urge parade-goers to hydrate themselves with “drink boxes.”
In Asia, AUDUSD traded narrowly ahead of the RBA policy meeting minutes, released on Tuesday. Traders are looking for insight into the dovishness of the central bank after it cut rates to a record low of 1.25% on June 4. NZDUSD is awaiting GDP data on Thursday.
USDJPY held on to Friday’s gains after US data took some of the pressure off the Fed to cut rates this week. A bounce in US Treasury yields helped.
In Europe, UK politics, an upcoming ECB President Draghi speech, and the Bank of England monetary policy meeting on Thursday, sidelined FX traders. EURUSD traded in a 1.1205-22 range while GBPUSD stayed in a 1.2573-97 band.
The UK joined the US in blaming Iran for the oil tanker attacks. Iran has denied any involvement. And just to stir the pot, Iran announced it would breach the treaty-imposed cap for its stock of enriched uranium in 10 days.
USDCAD dosed alongside the rest of the majors. Canadian inflation data is due Wednesday, and Retail Sales reports are released Friday.
There aren’t any notable domestic or US economic data available today, suggesting Wall Street and oil prices will guide FX markets.
USDCAD Technical Outlook
The intraday USDCAD technicals are bullish while above 1.3350 looking for a break above the 1.3430-40 area to extend gains to 1.3480 and then 1.3550. A move below 1.3350 targets 1.3300 and then 1.3240. The long term uptrend from October 2018 low of 1.2920 stays intact while prices are above 1.3250. For today, USDCAD support is at 1.3390 and 1.3350. Resistance is at 1.3440 and 1.3480. Today’s Range 1.3360-1.3440
Chart: USDCAD 1 hour