April 2, 2012
|USD/CAD Open 0.9977-82 Overnight Range 0.9954-9980
The Canadian dollar had a real quiet overnight session to start the month, as did the rest of the majors, with traders struggling to find direction. Chinese PMI rose to 53.1 in March vs 50.0 in February, however this was still the weakest number since 2009. Similar HSBC data for smaller Chinese companies points to a deeper economic slowdown. Unemployment in the Eurozone area rose to 10.8% from 10.2%, manufacturing output declined and general strikes spread throughout Spain and Italy, protesting austerity measures. The Nikkei rose, the Hang Seng and ASX declined and everything but the DAX was down in Europe. NY equity futures were flat. WTI Oil is $102.54 and gold is $1,668.10
The short term USD/CAD technical’s remain neutral, The currency pair is content to bounce around in a 0.9880-1.0050 band and even a move either side of this range would be hard pressed to extend much more than 50 points. For today, USD support is at 0.9960 and 0.9930. Resistance is at 0.9990, 1.0010 and 1.0030
The Canadian dollar will be rangebound ahead of Thursday’s Canadian employment data (forecast +10.0K) Unemployment rate (unchanged at 7.4%) US employment data will be released on Friday, while Canada and most of Europe is closed for Good Friday.
Today’s Range 0.9960-1.0005