January 17, 2013
USD/CAD 0.9864-69 Overnight Range: 0.9854-0.9886
The Canadian dollar traded with a very modest negative bias in a mixed bag of an overnight session. The US dollar retreated with European and Skandi currencies but scratched out gains vs. the JPY, Kiwi and the Aussie. An unexpected drop in Australian payrolls (-5,500) and a bump in the unemployment rate (5.4% from 5.3%) pressured the AUD$ while backpedalling from Japan’s Economy Minister helped to reverse JPY gains from yesterday. The EUR/USD made headway helped by a drop in Spain’s borrowing costs. Global equity indices are mostly flat to higher and NY equity index futures are also in positive territory. US data releases today include: Jobless claims (369K), Housing starts (890k), Building Permits (905k) and Philly Fed (5.6) There isn’t any Canadian data of note. WTI oil is $94.81 and gold is $1,682.27
The short term USD/CAD technicals are still slightly bullish while the US dollar is trading above the 0.9830- 0.9840 area. However, there is strong resistance levels at 0.9881 (100 D moving average) and at 0.9901 (61.8% fibo retracement of 0.9633-1.0060 range). For today, USD support is at 0.9850 and 0.9830. Resistance is at 0.9880 and 0.9900.
And in other news, Google denied reports that it’s mapping team ran over a donkey in Botswana, despite photographic evidence that it did. Apparently the driver was distracted as he was also on a mission to help find evidence that Manti Te’o (Notre Dames Heisman Trophy runner-up) had other girlfriends and not just imaginary ones prone to dying.
Today’s Range 0.9840-85
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Vice President, FX Trading