Loonieviews December 2,2013


USDCAD Open 1.0633-37 Overnight Range 1.0616-52

Original post on Saxo Bank’s Trading Floor

The USDCAD started the week bid and attempted to crack resistance at 1.0660 which failed although the retracement from that level is rather shallow. Low WTI oil prices are undermining the loonie. Chinese PMI data beat forecasts (54.1) giving the AUDUSD a boost while USDJPY smashed through resistance at 102.5 and jumped to 102.85. Euro zone PMI’s were on the strong side but EURUSD still dropped through support at 1.3580. Global equity indices are all lower (except for Hang Seng) while NY equity index futures are flat. US data on tap includes Markit Manufacturing PMI and ISM Manufacturing PMI. There isn’t any data from Canada. Gold is at $1,238.10 and WTI oil is $92.73

The USDCAD technicals are bullish while trading above the short term USDCAD uptrend line at 1.0580. A break of strong resistance at 1.0660 will extend gains to 1.0800. Intraday, USDCAD has support at 1.0630, 1.0610 and 1.0585. Resistance is at 1.0660 and 1.0720

The Bank of Canada interest rate announcement on Wednesday and Friday’s jobs report should keep the USDCAD in a 1.0610 -1.0660 at least until after the statement is released on Wednesday

Today’s Range 1.0510-60

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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