LoonieViews August 7, 2012

August 7, 2012
USD/CAD Open 0.9980-85 Long Weekend Range 0.9980-1.0020

The Canadian dollar broke through parity Friday and has spent the rest of the time bouncing between 0.9980 and 1.0020. The better than expected US employment data Friday put an optimistic spin to the American economic outlook which carried over into Asian markets yesterday and today. The RBA surprised markets at tad, living interest rates unchanged which gave the AUD/USD a boost. European sentiment is less bearish following last week’s bold statements by the ECB president indicating that action would be taken to resolve the debt crisis. Asian equity indices were higher, European equity indices are mixed and US equity indice futures are higher. WTI Oil is $92.53/bbl and gold is $1,615.01

The short term USD/CAD technicals are bearish USD and the down-trend channel is intact. For today, USD support is at 0.9970, 0.9940 and 0.9920. Resistance is at 1.0005 and 1.0020

The Canadian dollar is getting a boost from the modestly improved sentiment for the global economic outlook, the softer US dollar profile, firmer WTI oil prices and ever present demand for $15.1 billion CAD$ by CNOOC.

And in other news, the gold medal winner in the category of “Great Idea, Bad Timing” goes to Chance Bothe, a 21 year old Texas man. He sent a text reading “"I need to quit texting because I could die in a car accident" and then drove over a bridge and plunged into a ravine. He lived but suffered severe injuries.

Today’s Range 0.9970-1.0020

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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