USD/CAD – Canadian dollar trading sideways, Poloz testimony next

Kenny Fisher MarketPulse

The Canadian dollar is trading sideways in the Tuesday session. Currently, USD/CAD is trading at 1.3141, up 0.05% on the day. On the release front, there are no Canadian data indicators for a second straight day. Bank of Canada Governor Stephen Poloz will testify before the House of Commons Standing Committee on Finance. In the U.S, CB Consumer Confidence is expected to dip to 136.3 points. On Wednesday, Canada releases GDP and Poloz continues his testimony on Parliament Hill. The U.S will release ADP nonfarm payrolls.

A black October for the stock markets has badly shaken investor confidence, which has translated into softer demand for minor currencies like the Canadian dollar. The currency has slipped 1.73% in October, despite a Bank of Canada rate hike last week. At the forefront of geopolitical tensions is the trade war between the U.S and its major partners, particularly with China. Tensions between the two largest economies show no signs of easing, and the Trump administration continues to threaten further severe tariffs on China. The U.S has also imposed steel tariffs on its two neighbors, Canada and Mexico. On Monday, Mexico's deputy commerce minister said that Mexico would not sign the new USMCA pact, which replaces NAFTA, unless the U.S agreed to remove the tariffs against Mexico and Canada. We'll get a look at Canadian GDP for August on Wednesday, which could be a market-mover. The economy expanded 0.2% in July, and the markets will be hoping for a stronger gain on Wednesday.

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USD/CAD Fundamentals

Tuesday (October 30)

9:00 US S&P/CS Composite-20 HPI. Estimate
6.0% 10:00 US CB Consumer Confidence. Estimate 136.
3 16:15 Canadian BoC Governor Poloz Speaks

Wednesday (October 31)

8:15 US ADP Nonfarm Employment Change. Estimate 190K
8:30 Canadian GDP
16:30 Canadian BoC Governor Poloz Speaks

Open: 1.3134 High: 1.3145 Low: 1.3100 Close: 1.3141

USD/CAD Technical

S3	S2	S1	R1	R2	R3
1.2831	12970	1.3067	1.3198	1.3292	1.3383

USD/CAD edged lower in the Asian session but recovered in European trade. The pair has ticked higher in North American trade

1.3067 is providing resistance
1.3198 is the next resistance line
Current range: 1.3067 to 1.3198

Further levels in both directions:

Below: 1.3067, 1.2970, 1.2831 and 1.2733
Above: 1.3198, 1.3292 and 1.3387

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

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