USD/CAD Open 1.0198-03 Overnight Range 1.0176-1.0213
The Canadian dollar retreated from its recent highs but is still trading within the well-defined but narrow 1.0140-1.0240 band in an unsettled overnight market ahead of the two day FOMC meeting that starts today. The AUD/USD slipped following the release of the minutes from the RBA meeting suggesting that Aussie rates could go lower. USD/JPY firmed in a choppy session after trading near strong support. The EUR/USD gained following a positive ZEW report, but all of the above were merely diversions ahead of Mr. Bernanke and the Tale of the Taper. Even today’s US May CPI data (forecast 0.2% m/m, Core 0.2% m/m) and US May Housing Starts (Forecast 950k, Building Permits 976k) will only make a brief splash. Global equity indices were a mixed bag; Asia down, Europe mixed and NY equity index futures are up. Gold is $1,372.00 and WTI is $97.65
The short term USD/CAD technicals are neutral, needing a break either side of 1.0140 or 1.0250 to provide some direction. The USD/CAD appears to have much stronger support at 1.0140 than resistance at 1.0240 and an intraday US dollar uptrend suggests a slight bid bias to the pair. For today, USD support is at 1.0190 and 1.0160. Resistance is at 1.0220 and 1.0250
And in other news, here is the first look at the FOMC’s quantitative easing taper program.
Today’s Range 1.0190-1.0250