LoonieViews October 5, 2012

October 5, 2012
USD/CAD Open 0.9806-11 Overnight Range 0.9800-11

The USD/CAD rate broke below the 0.9840 support level yesterday and never looked back, dropping to 0.9800 where it settled for most of the overnight session. The AUD gained in part due to demand for AUD/JPY after the BoJ left the bank’s asset purchase tool unchanged. However weak retail sales data and expectations of further rate cuts capped AUD gains. The FX majors were parked awaiting today’s US employment data (forecast +115K) .Canadian job gains are forecast to be +12K Global equity indices are higher and NY equity futures indices are flat to up. Gold is 41,790.20 and WTI oil is $90.23

The short term USD/CAD technicals are bearish following the break of support at 0.9840, negating the USD/CAD uptrend channel that was in place since September 14, 2012. For today, the first support level is now 0.9790 followed by 0.9760 and then 0.9730. Resistance is at 0.9815 and 0.9850.

The Canadian dollar is poised to extend gains today on the back of stronger employment reports from both Canada and the US

And in other news, China, fresh from making a bold raid on Canada’s oil sands, appears to be looking to ease trade through Canada’s borders. Chinese Embassy officials (surely, no spies) wined and dined Canadian Border Services Agency employees at a Mississauga restaurant, getting the border guys stinko drunk and leaving them puking in the parking lot. Perhaps, the next shipment of toxic , children’s toys was being pre-cleared.

Today’s Range 0.9760-0.9850

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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