USDCAD Open (6:00 am) 1.3376-80 Overnight Range 1.3365-1.3386
Canada Housing Starts bounced back from February’s drop and USDCAD dipped on the news. The data confirmed conclusions from some analysts who blamed the soft February report on poor weather. USDCAD slipped to 1.3365 from 1.3376 while traders ignored the building Permits report, which was from February.Canada Housing Starts bounced back from February’s drop and USDCAD dipped on the news. The data confirmed conclusions from some analysts who blamed the soft February report on poor weather. USDCAD slipped to 1.3365 from 1.3376 while traders ignored the building Permits report, which was from February.April 8, 2019
USDCAD is trapped in a 1.3270 1.3460 range. Prices are supported by Friday’s weaker than expected Canadian employment report (-7,200 jobs) compared to the US data with a dash of uncertainty because of the ongoing Canada/China tensions stemming from Canada arresting the Huawei CFO. (at America’s request) High oil prices have stymied USDCAD upside.
WTI oil prices are consolidating gains following their post NFP data surge. Prices traded in a $63.32-$63.50 range overnight and opened in New York just below the top. Oil prices were already underpinned by the Venezuela and Iran sanctions and Opec production cuts when news of renewed fighting in Libya threatened further supply disruptions and led to fresh demand.
USDJPY dropped following dovish remarks from Bank of Japan Governor Haruhiko Kuroda warning that US/China trade tensions and weakening global growth were taking a toll on the domestic economy. USDJPY fell from 111.72 to 111.35.
AUDUSD dropped after weaker than expected job ads data, but it recouped its losses in Europe and opened unchanged in New York. NZDUSD traded sideways.
EURUSD is trading above Friday’s pre-nonfarm payrolls data levels. US dollar demand after NFP rose a better than expected 196,000 disappeared in Asia in part because the tepid 0.1% rise in average hourly earnings suggested the report was “meh” rather than “yeah.” EURUSD traded above its overnight peak in the early New York session.
GBPUSD inched higher in Asia but retreated in Europe and opened in New York in the middle of its 1.3030-71 range. Traders are waiting to see if Prime Minister Teresa May and Labour Leader Jeremy Corbyn can achieve a compromise Brexit plan before Friday.
USDCAD Technical Outlook
The intraday USDCAD technicals are bullish above 1.3360, a minor uptrend line level which guards 1.3310, the March uptrend line. A break above 1.3405 targets the 1.3440-70 resistance area. A move through that resistance zone targets 1.3670. A break below 1.3310 would suggest a retest of 1.3250. For today, USDCAD Support is at 1.3350 and 1.3310. Resistance is at 1.3405 and 1.3440.
Today’s Range 1.3350-1.3405
Chart: USDCAD daily