Loonie shrugs off oil price rally
USDCAD Open 1.2535-40 Overnight Range 1.2533-1.2640
The Canadian dollar staged an impressive rally overnight, thanks to the Reserve Bank of Australia (RBA). The RBA joined the rate cut party and cut the cash rate by 25 basis points to 2.25%, surprising many traders and triggering a 0.0150 point drop in AUDUSD. It also led to demand for Canadian dollars as AUDCAD plunged as well. At the same time WTI prices continued to climb in part due to profit taking and in part because some traders think that the oil supply glut has miraculously diminished. However, USDCAD buyers emerged as NY traders got to their desks and USDCAD climbed from 1.2540 to 1.2580 (currently)
There isn’t much in the way of data to encourage trading today although a couple of Fed speakers (Bullard, Kocherlakota) will provide some headlines.
The intraday USD CAD technicals are bearish following the move through the post BoC rate cut uptrend line at 1.2590. The downtrend from yesterday’s peak of 1.2665 is also at 1.2590 which if it caps the current intraday rally argues for a retest of 1.2510
Today’s Range 1.1.2510-1.2590