June 4, 2012
|USD/CAD Open 1.0380-85 Overnight Range 1.0380-1.0445
The Canadian dollar traded lower in Asia led by a weak AUD dollar on fall-out from Friday’s North American equity sell-off, global economic slowdown concerns and expectations of another RBA rate cut tomorrow. Short USD/JPY traders kept a wary eye on the BOJ as the current level has triggered intervention in the past. All the majors recovered somewhat in Europe on vague signs that Germany may ease opposition to Eurobonds to shore up the EU zone banking system. In addition, concern over the prospect of QE III in the US is making US dollar bulls a tad uneasy. WTI oil is trading lower at $82.32 another CAD$ negative.
The short term USD/CAD technicals are bearish looking for a move through support at 1.0375 to extend to 1.0340, while trading below 1.0420. Above 1.0420 negates the CAD$ upside move and opens up a retest of 1.0450. For today, USD support is at 1.0375 and 1.0340. Resistance is at 1.0410, 1.0420 and 1.0450..
The Canadian dollar is at a cross-road and Winter’s Coming when the G-3 play their Game of Thrones. Another round of quantitative easing by the House of Obama and the CAD$ will return to par. If the House of the EU implodes, than 1.10 is a real risk.
In other news, a Massachusetts man went up in flames after applying sun screen prior to barbecuing. Perhaps he should have used Coppertone rather than Smoking Joe’s Bone sucking sauce.
Today’s Range 1.0340-1.0420