FX Morning Update August 24, 2011
USD/CAD Open: 0.9886-89 Overnight Range: 0.9875-0.9907
The Canadian dollar traded quietly overnight. Canadian retail sales yesterday matched market expectations, however, US new home sales continue to be weak. Japan indicated it will try to tame the rise in its currency with a $100bn fund and Moody’s also downgraded Japan’s credit. German business confidence fell to a 14 month low. NY futures are pointing lower today. Oil is at $85.20 and gold is at $1,850. The US releases durable goods data today.
The short term Canadian dollar technicals remain negative. For the most part, the USD/CAD continues to trade between 0.9750 to 0.9950 over the last few weeks. For today, USD resistance is at 0.9905, 0.9955, 0.9974, and 0.9999. Support is at 0.9850, 0.9803, 0.9775 and 0.9667.
The loonie continues to be in a tug of war between those that believe the US economy is going to get worse and impact Canada vs. those that believe the economy will muddle through this soft patch. Hurricane Irene is expected to hit the US later this week. Sideways trading in the loonie continues to be the theme, look for a major data point, either positive or negative, to possibly create a breakout or Friday’s Bernanke speech to cause some volatility. Look for US durable goods order data to drive the direction of flows along with equities and oil.
Today’s Range: 0.9825 – 0.9925
By Admin | September 11, 2011 | Daily Update | 0 comments