USDCAD Overnight Range 1.3675-1.3735
USDCAD see-sawed in a fairly narrow range overnight, virtually ignored in Asia and drifting lower in Europe. That move stalled in early New York trading and USDCAD has climbed steadily. This mornings -1.5% decline in Manufacturing Shipments in September didn’t help matters. The US CPI data came in as expected and was ignored by traders.
In Asia, The Reserve Bank of Australia minutes were released. The RBA continues to be concerned with growth in China and Japan but nothing in the minutes sparked any interest among AUDUSD traders.
In Europe, the German ZEW beat expectations which may have provided some support to EURUSD, which was already in demand as long dollar positions got cut.
Today’s speech by BoC governor Poloz may garner a bit of attention if he expands on his unconventional monetary policy tools theme of last week. If so, it would suggest that he is encouraging a weaker Canadian dollar. However, the main event is Wednesday’s FOMC statement and press conference which will keep markets in tight ranges.
USDCAD technical outlook
The intraday USDCAD technicals are bullish while trading above 1.3670 with a break above 1.3710 leading to a retest of 1.3765. A move below 1.3680 would lead to 1.3630. For today, USDCAD support is at 1.3670, 1.3630 and 1.3610. Resistance is at 1.3710-1.3730 and 1.3770.
Forecasted Range for the day 1.3660-1.3730
Chart USDCAD daily