USDCAD Range 1.3123-1.3179
USDCAD drifted higher in Asia and the early European session but profit taking and Fed Vice-Chair, Stanley Fischer’s, doveish remarks drove it back down to Friday’s closing levels. Mr. Fischer talked about the threat of deflation which caused some to believe that he was doveish and raising more questions about a September rate hike.
Poor Chinese trade data kicked off the start of trading in Asia and consequently both Aussie and Kiwi dropped in what has been described as a quiet market with lower than usual volumes.
The Canadian dollar has enjoyed two consecutive positive data releases in Merchandise Trade and Employment which has put a short term cap on USDCAD in the 1.3200-10 area. If this week’s Housing Starts and Manufacturing Shipments are better than expected, USDCAD will revisit support in the 1.3000 area.
The intraday technicals are bearish following this morning’s break of the weak uptrend from the August 2 low which points to further weakness to 1.3070. A break of 1.3270 targets support at 1.3000. A break above 1.3210 suggests further gains to 1.3450
Today’s Range 1.3110-1.3170
Chart: USDCAD 30 minute with intraday uptrend break noted.