Loonieviews april 12, 2012


LoonieViews
April 12, 2012
USD/CAD Open 0.9997-1.0002 Overnight Range 0.9990-1.0040

The Canadian dollar climbed steadily overnight aided in part by a spike higher in AUD/USD, predicated on better than expected Aussie employment data (+44k vs forecast of +6.5k) In addition, the increased prospects for a “soft landing in China, Federal Reserve Vice Chairman Yellen’s comments re-iterating interest rates to stay low and optimism surrounding an Italian bond auction today all contributed to a modest rebound in risk sentiment. Asian equity indices were higher, European indices mixed and NY equity futures are in the positive territory to start the day. Gold is at $1,657.80 and WTI oil is $102.70 US data releases today include Jobless claims (+355k), PPI and Trade Balance.

The real short term USD/CAD technical’s are bearish while trading below 1.0020, looking for a break of 0.9990 for a return to 0.9940 and more 0.9920-1.0050 consolidation. For today, USD support is at 0.9990, 0.9960 and 0.9940. Resistance is at 1.0010, 1.0020 and 1.0050.

The Canadian dollar is locked in a well defined 0.9880-1.0040 trading band without any relief in sight. High oil prices and support from an improving US economic outlook elevated the loonie, while sporadic stampedes into risk aversion due to European debt woes and nuclear terror drive it lower.

In other news, a judge in Prattville Alabama slapped a three-day contempt of court sentence on a defendant for wearing baggy pants. “You are in contempt of court because you showed your butt in court,” a visibly irate judge told LaMarcus Ramsey. Left unsaid were the consequences for wearing a “hoodie”

Today’s Range 0.9960-1.0020

Michael O’Neill

LoonieViews

Categories Markets

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