COMMODITY CURRENCIES RETREAT
USDCAD Open (6:00 am) 1.2936-39 Overnight Range 1.2912-1.2955 9 Sept 16
NOTE: This chart represents gain (or loss) of G10 currencies vs the US dollar from NY close (4:00pm) to Sept. 9, 6:00 am EDT
The commodity currencies retreated in Europe with Aussie, Kiwi and the Loonie all under pressure. USDCAD traded sideways in Asia but punched above resistance in the 1.2940 area while AUDUSD dropped to 0.7600 from 0.7654. Kiwi reluctantly followed Aussie lower. There isn’t a clear catalyst for the moves although Oil and Gold prices are a tad lower.
North Korea announced that it successfully conducted another nuclear test which spooked Asia markets, particularly South Korea. As usual, the world leaders went “tsk, tsk”. China inflation data was lower than expected. (Aug. Actual 0.1% vs forecast 0.3%, m/m)
EURUSD went nowhere overnight, content to drift within a 1.1260-1.1283 range. Sterling was choppy. GBPUSD rallied from 1.3287 to 1.3334 in Asian and then retraced the entire move in Europe. The UK trade deficit narrowed and construction sector data improved.
Canada employment data is due this morning. Forecasts are for a gain of 20,000 jobs and an unchanged unemployment rate. Last month, Canada reported a loss of 31,200 jobs, all of which were government employees which is a rather dubious result, so a big jump is a reasonable guess.
USDCAD technical outlook.
The intraday USDCAD technicals are bullish while trading above 1.2920 looking for a break of the 1.2980 level to extend gains to the 1.3050-70 zone. A move below 1.2920 will lead back to 1.2850. Longer term, USDCAD is in a modest uptrend while trading above 1.2900, inside a well-defined 1.2650-1.3250 trading band. For today, USDCAD support is at 1.2920, 1.2880 and 1.2850. Resistance is at 1.2970, 1.3010 and 1.3050.
Today’s Range 1.2920-1.3020