January 29, 2013
USD/CAD 1.0058-63 Overnight Range: 1.0045-1.066
The Canadian dollar edged higher in another lack-luster overnight session garnering a wee bit of a lift from a slightly higher AUD/USD following an improved business confidence index down under. The USD/JPY retreated as traders await tomorrows FOMC statement and ignoring news of Japans $1.03 trillion dollar budget. Asian equity indices were flat to up a tad while European equity indices were mostly down slightly. NY equity futures indexes are pointing lower. Gold is $1,662.71 and WTI is $96.56. US data releases today include S&P C/S Home price index and Consumer Confidence
The short term USD/CAD technicals are mixed. USD bulls view the retreat from 1.0100 yesterday as consolidation and an opportunity to buy US dollars. US bears see the failure to extend gains above 1.0100 and the move below 1.0060 as evidence that the short term USD rally is over, confirmed by a move below 1.0040. For today, USD support is at 1.0040 and 1.0010. Resistance is at 1.0070 and 1.0100
And in other news, Americans are in a tizzy due to a National Chicken council report that there may be a shortage of chicken wings for Sunday’s super bowl. Officials are gob-smacked and are wringing their hands asking “how can this be?
(PS NOT a self portrait)
Today’s Range 1.0040-1.0070
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Vice President, FX Trading