March 20, 2012
|USD/CAD Open 0.9912-17 Overnight Range 0.9865-0.9917
The Canadian dollar climbed higher in early Asia and triggered stops on the break of the 0.9880 support zone, touching 0.9865 before the wheels fell off the bus and it gave back nearly all its gains. A report from BHP Billiton that steel demand in China was slowing and a lack of meaningful economic data releases this week was all traders needed to shift into risk off mode. Global equity indices including NY equity futures are all lower. WTI Oil is trading at $107.22/bbl and gold is $1,649.78. Data on tap today include US Housing Starts (forecast 700K) Building Permits (forecast 686K)
The short term CAD$ technical picture is muddled. The break of 0.9980 overnight and then the USD/CAD’s subsequent recovery through 0.9900 risks a break above 0.9920 to lead to a test of 0.9950 and perhaps 0.9980. A sustained move above 0.9980 negates the US downtrend channel intact since mid-November. For today, USD support is at 0.9895 and 0.9860. Resistance is at 0.9920, 0.9940 and 0.9950.
The Canadian dollar is getting chopped around in a directionless market even with rising oil prices failing to provide sustained loonie strength.
In other news, two women are running for Premier of Alberta. The focus of the campaign has shifted from taxes to the size of their wheels.
Forecast Range of the Day 0.9980-0.9950