Oil rally keeps Loonie firm
USDCAD Open (6:00 am) 1.2977-81 Overnight Range 1.2966-1.2991 12Aug.16
NOTE: This chart represents gain (or loss) of G10 currencies vs. the US dollar from NY close (4::00pm) to NY Open Aug 11, 6:00 am EDT
The overnight session was quiet. Chinese data which included Retail Sales and Industrial Production was slightly below forecasts which may have contributed to some slippage in AUDUSD and NZDUSD. USDJPY climbed above 102.00 in early Asia and then consolidated the gains in a 102.00-20 range into the New York open.
In Europe, German GDP data was better than expected, helping EURUSD drift higher. GBPUSD consolidated its losses below 1.3000 with traders content to await this morning’s US data.
Oil prices continued to move higher touching $44.14 before drifting lower in Europe. Yesterday’s Saudi Oil Minister’s comments have spooked oil bears and are behind the rally. The rise in WTI prices has boosted the Canadian dollar. USDCAD traded in a very narrow band overnight. As oil goes, so does the Loonie.
FX traders are looking for stronger than expected US data today, (Retail Sales, PPI, Business Inventories and Michigan Consumer sentiment) to boost rate hike sentiment and rally the greenback.
USDCAD technical outlook.
The intraday USDCAD technicals are bearish while trading below 1.3000 and looking for a break below the 1.2930-50 area to extend losses to 1.2835. A break above 1.3000 will shift the focus back to 1.3080 and 1.3120. For today, USDCAD support is at 1.2950 and 1.2930. Resistance is at 1.3000 and 1.3060
Today’s Range 1.2950-1.3040