February 15, 2012
USD/CAD Open 0.9985-90 Overnight Range 0.9940-1.0004
|The Canadian dollar started off trading defensively in Asia but popped higher, along with AUD/USD, commodity prices and equity indices. A report that The Peoples Bank of China has decided to open up the 9th Wonder of the World, The Great Wallet of China, and spread some of the $3 Trillion plus surplus dollars around in debt strapped Europe triggered the risk seeking rally. Meanwhile, the EU is still awaiting assurances that Greece will enact austerity measures into law. WTI Oil is at $101.83 and gold is at $1,726.97.
The short term CAD$ technical’s are bullish but bumping up against strong support in the 0.9930-40 area , supported by the move back below the 200 day moving average (0.9978) A move through the support should extend to 0.9880 and then 0.9860 with 0.9720 a long shot. For today, USD support is at 0.9940, 0.9930 and 0.9880. Resistance is at 0.9980 and 1.0010
The Chinese pledge to invest in European bail-out funds and to hold European assets gave the markets a huge boost despite no cheque being written. China has also pledged improvements to Human Rights and Child Labour Laws and to not sponsor computer hacking spy rings.
And in other news, the US State Department issued a travel warning on February 8, advising Americans to defer "non essential travel to almost half of Mexico, because of drug related violence. Reportedly, the Mexican Interior Minister , standing behind triple thick bullet proof glass, clad in Kevlar, and surrounded by heavily armed troops , claimed the US was wrong and then left to attend a policeman’s funeral.
Today’s Forecasted Range 0.9910-.9980