Loonieviews March 13, 2014


LOONIEVIEWS

USDCAD Open 1.1063-68 Overnight Range 1.1058-1.1120

The USDCAD dropped in a lively overnight session as risk aversion from the beginning of the week dissipated. Kiwi kicked off the session with a spike higher after a 25 bp rate hike, which surprised no one, but the statement sounded a tad more hawkish than expected. Not to be outdone, Aussie employment data blew away expectations, gaining 47,300 jobs and AUDUSD headed for the moon. The Chinese data was below forecasts and had no impact. The skeptics among us believe the data is massaged to help justify the recent CNY devaluations. EURUSD rallied on diminished risks of and ECB rate cut. WTI is $98.11 soft due to perceived weakening demand from China and the US release of 5 million barrels from the Strategic Reserves not helping matters. Today’s US Retail Sales report may refocus traders on the growth outlook for the US economy.

The short term USDCAD technical are bearish while trading below 1.1090 but need to break support in the 1.1040-50 zone to extend losses to 1.0980-90, A move back through 1.1100 points to another look at 1.115-60 resistance. For today, USD support is at 1.1060, 1.1040 and 1.1010. Resistance is at 1.1095, 1.1120 and 1.1150

Today’s Range 1.1040-1.1095

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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