The US dollar opened in New York on the defensive. Regional economic data releases, French politics, and North Korea bluster, all played a role.
In Asia, better-than expected New Zealand inflation data (CPI Actual 2.2% vs forecast 2.0%, y/y) powered NZDUSD from 0.6998 to a peak of 0.7050 by the time Europe opened. That move was almost completely reversed by the New York open.
The Australian dollar pulled itself off the lows, supported by broad dollar weakness and a forecast-beating NAB Business Confidence report. (Actual 6 vs. forecast 5) AUDUSD climbed from 0.7494 to 0.7531 and then eased back to 0.7510 when New York started the day.
USDJPY bopped and weaved inside a 108.70-109.06 range. Japan’s Trade data was better than expected.
Euro traders took advantage of the negative tone to the US dollar and drove EURUSD from 1.0707 to 1.0772. It has eased back from the peak on profit taking.
Sterling tracked EURUSD moves. GBPUSD rallied from 1.2774 to 1.2841, supported to a degree by upwardly revised FX forecasts from major banks.
Oil prices recouped some of yesterday’s losses. Saudi Arabia and Kuwait officials have hinted that oil production cuts will be extended.
The Canadian dollar was an underperformer. USDCAD traded in a narrow band with a bullish bias. For good reason.
The incompetent clowns of Kathleen Wynne’s provincial government are planning to announce a cure for Toronto’s red hot housing market. President Trump is taking on the Canadian dairy farmer’s cartel and foreigners are unloading oilsands assets.
USDCAD continues to trade as if a large “Buy” order is being managed
The are two US economic reports today. They are; weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing survey. Both will be forgotten almost immediately.
Geopolitical issues will be at the forefront, especially after North Korea warned of a “In the case of our super-mighty pre-emptive strike being launched, it will completely and immediately wipe out not only U.S. imperialists’ invasion forces in South Korea and its surrounding areas but the U.S. mainland and reduce them to ashes,”
Once again, Wall Street moves, oil prices and the French election will provide FX direction.
|Close 4:00 pm EDT-Open 6:00 am EDT|
USDCAD Technical outlook:
The intraday USDCAD technicals are bullish. Yesterday’s break of the 1.3440-60 resistance area has put 1.3600 in play although resistance at 1.3530 and 1.3555 will slow the rally. The speed of the uptrend warns that the currency is vulnerable to a correction. A break below 1.3440 would accelerate the decline and lead back to 1.3350. For today, USDCAD support is at 1.3460, 1.3430 and 1.3380. Resistance is at 1.3495, 1.3515 and 1.3540.
Today’s Range 1.3460-1.3530
Chart: USDCAD 1 hour
Author: Agility Forex
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