Canadian Dollar Currency Exchange Update August 31, 2015 – China Weighing on Loonie
USD/CAD Open: 1.3269-1.3270 Overnight Range: 1.3211-1.3274
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.17 and gold is at $1,127. US futures are lower. Today, Canada releases current account balance data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3316. Support is at 1.3183.
The Canadian dollar is soft this morning as global economic concerns stemming from China continue to linger and commodity currencies are weaker. Canadian current account balance was soft for the second quarter, with an upwards revision being made to first quarter data. This week will be busy for domestic releases from Canada, which will provide additional insight into how the price rout in commodities has affected the Canadian economy. The Fed appears to be divided regarding a September rate hike, which makes US data releases even more significant for the month of September. Relative monetary policy will be an important driver of the Canadian dollar leading up to the September 9th Bank of Canada meeting.
Poor US data may delay a rate hike for September but strong data is no assurance of a rate hike. Look for the loonie to follow oil prices directionally along with Chinese growth sentiment.
Today’s Suggested Range USD/CAD: 1.3250 – 1.3350
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
Knightsbridge Foreign Exchange has based the opinions expressed herein on information generally available to the public. Knightsbridge Foreign Exchange makes no warranty concerning the accuracy of this information and specifically disclaims any liability for trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
By Admin | August 31, 2015 | Daily Update |
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