USDCAD Open 1.0662-67 Overnight Range 1.0678-1.0649-1.0667
USDCAD was sidelined overnight with AUDUSD taking center stage. Australian employment beat expectations and AUDUSD spiked higher but the details of the report were soft and it quickly reversed, giving back all of its gains and more. The commodity currencies have shrugged off soft Chinese trade data. Meanwhile the US dollar has recouped all of its losses against the majors following the release of the FOMC minutes. The exception is USDJPY which broke support at 101.50 and hasn’t recovered. Obviously, short term FX traders were long US dollars, positioned for "hawkish" sounding minutes, got disappointed, got stopped and the game begins anew. Yesterday’s rise in Canadian housing starts combined with a rise in today’s New Housing Price index (forecast 0.3%m/m) should support the loonie ahead of tomorrow’s Canadian employment report.
The intraday USDCAD technicals are bearish while trading below 1.0670 looking for another test of support at 1.0630. There is a lot of medium term and long term support coming into play between 1.0560 and 1.0610 which should temper US dollar losses. A move above 1.0670 will meet additional resistance at 1.0690 and 1.0720
Today’s Range 1.0630-70