March 5, 2012
USD/CAD Open 0.9950-55 Overnight Range 0..9888-0.9960
|The Canadian dollar is starting the week on the defensive with a shift into risk-off trading powering the US dollar higher vs the majors. The USD buying began in Asia on confirmation of last week’s report that China would attempt to manage GDP growth lower to a mere 7.%% from their 8.0% target. This led to a sell-off in Global equity indices and commodities. WTI Crude is $106.23/bbl and gold is $1,687.66. The Bank of Canada is one of a number of Central Banks with rate decisions out this week in addition to employment reports in Canada (Forecast +14.5K) and the US (+210K)
The short term USD/CAD technical’s are bullish looking for a break of 0.9980 to extend to the 1.0040-50 zone. However there is strong USD resistance at 0.9980 which could mean more choppy trading within a 0.9880-0.9980 range. for today, USD support is at 0.990, 0.9910 and 0.9880. Resistance is at 0.9980, 1.0005 and 1.0020
The Canadian dollar is under pressure, in part due to softer oil prices because of the bounce in the US dollar. However the improving outlook for the US economy will temper CAD$ losses on the view that a growing US economy is bullish for Canada as well.
And in other news, outrage is growing over the detention and strip search of a Kitchener, Ontario father by police because his four year old daughter drew a picture of a man with a gun. The Premier of Ontario has described the events as a "teachable moment" There is no mention of an "accountability moment", once again allowing bureaucrat’s and moronic police officer’s to hide behind the massive security wall of public service.
Today’s Forecasted Range 0.0.0.9940-1.0020