USDCAD Range 1.3190-1.3285

USDCAD gained nearly a cent from early this morning, in part due to a move lower in WTI which is currently trading at $44.12/barrel, down from the overnight peak of $44.92/b. A weaker-than-expected Canadian Capacity utilization number didn’t help. US jobless claims came in as expected (2.26 million)

It was a lively overnight session and for the most part, USDCAD was a mere bystander. The RBNZ kicked things off in Asia when they unexpectedly delivered a very doveish statement and press conference after cutting rates by 0.25%. The Aussie dollar was next at bat and homered with better-than-expected employment data. The AUDNZD cross soared.

USDJPY jumped following a statement by a politician suggesting that October 30th would be a good date for additional stimulus. The validity of the comment may be dubious but USDJPY traders liked it.

A sudden drop in USDCNH during the European session caused a bit of a stir as traders concluded that it was intervention.  Meanwhile, Asian equity indices closed down and European indices are in the red.  In contrast, US equity futures indices are all slightly higher.

 The Bank of England left rates unchanged and delivered a slightly doveish statement although the pop in GPUSD suggests otherwise.

Technical Outlook

The two week 1.3150-1.3350 range remains intact although the underlying bias is bullish USDCAD.  A break of 1.3350 will lead to 1.3450 while a move below 1.3150 will extend down to the 1.2950-1.3000 zone.  For today, USDCAD support is at 1.3190 and 1.3160.  Resistance is at 1.3270 and 1.3310.

Today’s Range 1.3210-1.3290


Chart: USDCAD 30 minute with trading band