USDCAD Overnight Range 1.3135-1.3180        

The US dollar has backed off a few steps after last week’s rally. Asia started off slowly because New Zealand was closed for Labour Day. It picked up a bit of steam on a bounce in Chinese equity indices. Another advisor to Japan’s PM Abe chimed in with comments stating that the Bank of Japan can refrain from easing and USDJPY retreated from its peak.

In Europe, A Swiss National Bank official said that CHF is overvalued and the Bank of England’s governor and weatherman, Mark Carney warned that households should prepare for higher rates. All in all, a normal Monday, with traders looking for direction.

Traders are cautious ahead of key data releases and central bank meetings this week.  A major focus is Wednesday’s FOMC statement although the lack of a press conference diminishes its impact. The RBNZ rate decision is due tomorrow while the Bank of Japan decision wraps up the week on Friday.  Friday is also when Canada’s August GDP data is due.

There isn’t a whole lot of anything on tap today to spark much trading interest suggesting that USDCAD and the majors will be confined to their overnight ranges.

USDCAD technical outlook

The intraday technicals are bullish while trading above 1.3070 looking for a break above 1.3200 to extend gains to 1.3250 and then 1.3450.  A move below 1.3070 while lead to 1.2980 and argue for additional 1.2900-1.3200 consolidation.  For today, USDCAD support is at 1.3130, 1.3105 and 1.3070.  Resistance is at 1.3160, 1.3180 and 1.3210

Today’s forecast range is 1.3130-1.3190

Chart USDCAD 1 hour with intraday uptrend noted