USDCAD Range (since Monday) 1.3211-1.3307
USDCAD rejected attempts to take it above 1.3310 overnight and it has given back all of its gains since yesterday due to a general US dollar retreat against the majors, with the exception of both JPY and CHF. In addition, a bounce in WTI prices from $44.15/barrel to above $45.00/b helped the Loonie’s rise.
Overnight, it was a mixed bag of news and data that attracted attention but provided no lasting US dollar direction. USDJPY rallied early but that move wasn’t sustained. China’s trade data was viewed as weak as exports declined 5.5%, even though the trade balance increased. China’s equity indices closed in the green which helped global risk sentiment.
There is a lack of data today which suggests FX trading will be governed by equity market moves. USDCAD will continue to pay close attention to WTI while positions get adjusted ahead of tomorrows’ Bank of Canada interest rate decision and statement.
The intraday rally rejected gains above 1.3300 and subsequently reversed. The break below 1.3260 points to further losses to 1.3180, representing the ragged, mid-August uptrend line. A break of 1.3180 suggests a steeper drop to 1.3150 and then the 1.3100-10 area. A move above 1.3350 would target 1.3450.
Today’s Range 1.3180-1.3260
Chart: USDCAD 1 hour with broken intraday uptrend shown