Loonieviews May 23, 2013


USD/CAD Open 1.0330-35 Overnight Range 1.0328-1.0395

The Canadian dollar remained under pressure overnight after being booted through the uprights by Ben Bernanke’s befuddling comments on exiting from quantitative easing yesterday afternoon. And to make matters worse, China’s May HSBC flash PMI printed at 49.6 (below 50 means economy is contracting). Asian equity indices tanked and the JPY soared on “risk-off”, safe haven buying. The tone improved slightly during the European session with the release of the composite European PMI at 47.6 vs consensus of 47.0. However it was not enough to keep the European equity indices from big declines. NY equity index futures are also down to start the day. US data releases today include: Jobless claims (+345k), Markitt May Manufacturing PMI (51.8), Housing Price Index (0.8) There isn’t any Canadian releases. Gold is $1,392.00 and WTI Oil is $93.36

The short term USD/CAD technicals are bullish targeting 1.0440 and then 1.0630.The overnight dip back below 1.0360 risks a move to 1.0320 while a move through support at 1.0280 suggests 1.0240-1.0360 consolidation. For today, USD support is at 1.0330, 1.0320 and 1.0280. Resistance is at 1.0360, 1.0380 and 1.0410

And in other news, the Australian Board of Health has released further evidence that early morning jogging can be hazardous to your health. An Australian politician, Shane Rattenbury, was knocked to the ground and mauled by an irate Kangaroo, whose breakfast was disturbed by the jogging Rattenbury. It is nice that, for a change, it wasn’t a politician putting his foot in his mouth, but rather a marsupial doing it for him.

Today’s Range 1.0320-1.0380

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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