USDCAD Overnight Range 1.3083-1.3157
The US dollar caught a bid in New York trading and has rallied across the G-10 spectrum, except against the Australian dollar which is still basking in the glow of a neutral to doveish RBA interest rate statement.
Australia was center-stage in Asia. The Reserve Bank of Australia left interest rates unchanged which was expected by about ½ of traders and delivered a fairly neutral statement. AUDUSD sank, rallied and is currently sitting almost where it was before the announcement.
Japan was closed for Cultural Day and it appears that European FX trader’s celebrated the holiday. The US dollar drifted sideways but with a bullish bias in an uneventful session ahead of key data later this week. ECB President, Mario Draghi is giving a speech at 19:00 GMT which is expected to be doveish in keeping with his press conference on October 22.
Kiwi got hammered hard around 5:45 am PST when prices at the GlobalDairyAuction results plunged 7.4%, NZDUSD lost over 1% almost instantly
USDCAD flat-lined in Asia and then drifted higher in Europe on the back of modest US dollar strength while ignoring gains in oil prices. The trend to higher prices continued into New York but once again, gains above 1.3150 were rejected. Interestingly, WTI prices have risen from $46.30/b to $47.13 currently and the Canadian dollar has not reacted. It may just be a case of a delayed reaction.
USDCAD technical outlook
The intraday technicals are bullish while trading above 1.3080 looking for a break of 1.3150-60 to extend gains to 1.3180 and then 1.3230. A move above 1.3230 will meet resistance at 1.3280 which if broken should lead to 1.3455. On the downside, a break below the 1.3050 area will target support at 1.2997 which represents the 61.8% retracement of the Oct12-Oct 26 trading range
Today’s forecast range is 1.3090-1.3160
Chart USDCAD 4 hour