June 8, 2012
|USD/CAD Open 1.0340-45 Overnight Range 1.0258-1.0272-1.0353
The Canadian dollar lost all of yesterday’s gains overnight when traders concluded that yesterday’s Chinese rate cut was a precursor to bad economic data. Bernanke failure to deliver any new stimulus initiatives coupled with Spain’s rating cut and soft data from Germany, trampled yesterday’s investor optimism. As would be expected, Global equity indices and NY equity futures are all lower. WTI oil is at $82.37 and gold is $1,582.00. The Canadian employment data is due out at 8:30 with the forecast being for a gain of 5K, sharply lower than last month’s add of 58.2k.
The short term USD/CAD technical’s have flipped back to bullish with the USD rally back above both 1.0290 and 1.0320. The abrupt stops and starts suggest further 1.0250-1.0450 range trading. For today USD support is at 1.0320 and 1.0280. Resistance is at 1.0380 and 1.0420.
Any Canadian dollar movement on positive domestic data will be short lived due to the whims of bi-polar Global investors jumping on and off the risk bandwagon. Buy USD/CAD on any dips if we get an upside surprise in the Canadian employment data
Today’s Range 1.0270-1.0370