USDCAD Open 1.1036-41 Overnight Range 1.1022-44
The USDCAD has hugged the 1.1040-60 resistance area through the overnight session. AUDUSD drifted lower, testing recent support at 0.8905 while USDJPY snapped a three day uptrend and dropped to 102.08. In Europe, Cable came under mild pressure as did EURUSD. Canada housing starts are forecast at 182.5K but the weather may have affected the result. Weaker than expected data may undermine the loon. Canada’s Finance Minister tables his annual budget tomorrow which should be a non-event for FX markets as he his saving his bullets for next year’s election budget.
The short term technicals are bearish USDCAD while trading below 1.1060 with a move below 1.1020 setting up a retest of support in the 1.0960-90 zone. A move above 1.1060 should lead to 1.1120. For today, USD support is at 1.1020, 1.0990 and 1.0960. Resistance is at 1.1050, 1.1060 and 1.1080