November 6, 2012
USD/CAD 0.9927-42 Overnight Range: 0.9928-0.9967
The Canadian dollar shook off the effects of a modest shift into risk aversion and eked out some gains below the 0.9960 support area overnight, mainly due to CAD$ demand against the Euro. In Asia, the AUD/USD got an extra boost when the RBA left rates on hold. Wednesday’s Greek vote on EU appeasing budget cuts has created enough internal rancor to make investors nervous, putting downward pressure on EUR/USD. Today’s Canadian release of the IVEY Purchasing Manager Index could give the loonie a boost if it is above 61.0 The Nikkei and the Hang Seng were lower, the ASX 200 was higher and European equity indices are mixed. NY equity indice futures are up to start the day. Gold is trading at $1,689.50 and WTI Oil is 85.90
The short term USD/CAD technical’s remain mixed and unchanged from yesterday. We need a move below 0.9880 to get an extension to 0.9770 or a break above 1.0020 to test 1.0240. Moves in between the 0.9880-1.0020 band is just noise. For today, USD support is at 0.9920 and 0.9880. Resistance is at 0.9970 and 0.9990
The US election will be old news by tomorrow barring any tie breaking court challenges allowing investors to start worrying about the Fiscal Cliff and its impact on the US economy.
And in other news, tow Montreal men were charged by Regina police in a failed scam to turn plain white paper into money. Apparently the con men were inspired by Rumpelstiltskin tales.
Today’s Range 0.0.9920-.09980
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