Overnight Range 1.3265-1.3291
The Loonie barely budged in overnight trading. And it wasn’t alone. FX traders were hard-pressed to find fresh reasons to buy, so they didn’t.
But not everyone.
Aussie traders found a reason to get involved. Weaker-than -expected October Q3 GDP data. (Actual -0.5% vs forecast 0.3% m/m, 1.8% vs. forecast 2.5% y/y) sent AUDUSD down. (from 0.7473 to 0.7415) It recovered half of the move by the New York open.
Kiwi traded sideways in Asia and then drifted higher into the New York open.
USDJPY bounced inside a narrow 113.90-114.40 range while ignoring comments from Bank of Japan Deputy Governor Kikuo Iwata.
Sterling insured that the day wasn’t a total waste of time for traders. GBPUSD extended yesterday’s New York decline when it broke below minor support at 1.2360. and dropped to 1.2577. That
move was due to weak Industrial Production, and Manufacturing Production reports. The Housing data didn’t help, either. Housing Prices in November only rose 0.2%, down from the 1.5% gain in October.
EURUSD stayed in a narrow band with EURGBP demand offsetting downward pressure ahead of Thursday’s European Central Bank meeting.
Oil prices inched up in early Asia trading due to a 2.2-million-barrel decline in US crude inventories, as reported by API. The move didn’t last. WTI dropped from $51.07 to $50.38. until renewed demand was seen in Europe. WTI opened in New York at $51.10. The focus has shifted to this morning’s EIA Crude report.
The Canadian dollar traded in a very narrow range overnight. USDCAD demand from domestic economic growth concerns and a doveish Bank of Canada is being offset by firm oil prices. This morning’s Bank of Canada policy statement should not alter the equation
The Bank of Canada policy statement is the marquee attraction for USDDCAD traders today. Traders have low expectations for this meeting. The election of Donald Trump and the looming FOMC decision are good enough reasons for the BoC to stay the course. And they will. There are not any new economic forecasts being released and there isn’t a press conference.
There isn’t any US data of note suggesting that today’s trading won’t deviate from the overnight ranges.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.3340 looking for a move below 1.3235 to extend losses to 1.3190 and then 1.3150. A break above 1.3340 will lead back to 1.3380 and then 1.3450. For today, USDCAD support is at 1.3255 and 1.3235. Resistance is at 1.3290 and 1.3140.
Today’s Range 1.3240-1.3340
Chart: USDCAD 30 minute