Loonieviews June 4, 2013


USD/CAD Open 1.0313-18 Overnight Range 1.0271-1.0332

The Canadian dollar failed to hang on to yesterday’s “fixing” related gains and was in retreat throughout the afternoon and during the overnight session. Australia left rates unchanged as was expected and the AUD/USD still got a boost. Yesterday’s weak US ISM data had traders reducing expectations of an early end to QE which rallied equity markets and undermined the US dollar. Global equity indices all rose but US equity index futures are flat to down. Gold is $1,398.60 and WTI Oil is $92.95. US and Canadian trade reports are on tap today.

The short term USD/CAD technicals are bearish in the context of a 1.0270-1.0360 trading band; however the longer term trend is still US dollar bullish. A break above 1.0360 argues for 1.0420-40 while a move below 1.0270 suggests 1.0180. For today, USD support is at 1.0290 and 1.0270 while Resistance is pegged at 1.0340 and 1.0360.

And in other news, a young bull moose in Colorado is attempting to do to a statue, what Kathleen Wynn and her Liberal party are planning to do to Ontario taxpayers. In both cases, neither actions are based on reality, but on a myopic view of the world. The moose can be forgiven though-something about “stiff” and having no conscience.

Todays Range 1..0290-1.0360

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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