January 9, 2013
USD/CAD 0.9873-78 Overnight Range: 0.9861-0.9880
The Canadian dollar had another uneventful overnight session even as other currencies saw a little action. Worse than expected retail sales data in Australia saw the AUD/USD retreat but the on-going optimistic outlook left over from the Fiscal Cliff debate combined with more positive outlooks for China and the Eurozone helped the currency recover. FX traders are a wee bit nervous with EUR/USD unable to recover gains above 1.3130 warning that a move through 1.2980 could signal a US dollar rally. Global equity indices are mostly in positive territory as are NY equity futures indexes. WTI oil is $93.24 and gold is $1,662.77
The short term USD/CAD technicals are bullish USD/CAD while trading above 0.9820 but still need to crack through strong resistance at 0.9910 to extend gains. For today, USD support is at 0.9860 and 0.9840. Resistance is at 0.9880 and 0.9910.
Canada released housing starts at 8:15 (Actual 198K vs. forecast of 195K) but they had no effect on the USD/CAD rate
And in other news, the “Idle No More” movement threatens to upset the unemployment rate in Canada because if 300,000+ Indians become less idle and start working, Canada’s unemployment rate could plunge to 5%. In a related story, after seeing the tremendous amount of positive media coverage for the “Idle No More” movement, Ontario teachers have adopted a new slogan to show displeasure at having a contract imposed on them. It’s called Idle Some More” to reflect the fact that teachers will not participate in any extracurricular activities.
Today’s Range 0.9840-90
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Vice President, FX Trading