USD/CAD bears move in for the kill in firmer commodity complex


  • USD/CAD bears take back control on sofer US dollar.
  • US inflation weighing late in the week, bulls capitalise in divergence between Canada CPI.

USD/CAD has started the Asia day better offered following Wednesday's softer session in the greenback, inflation prints from around the globe and a slightly better risk tone in general. At the time of writing, USD/CAD is trading at 1.2625 and between a low of 1.2623 and a high of 1.2630 so far.

The commodity complex, on the whole, was higher and CAD, AUD, as well as NZD, were all closing the Wall Street session marginally better off. ''The move has coincided with a turn in equity sentiment and higher bond yields, and in that sense, it looks like a classic “risk-on” jump, albeit a very mild one,'' analysts at ANZ Bank said. 

Canada's annual inflation rate accelerated to 4.1% in August, its highest since March 2003, boosted in part by a big jump in gasoline prices. USD/CAD was down 0.52% at 1.2625 after trading in a range of 1.2624 to 1.2708 the high. Sterling rose 0.23% versus the dollar at $1.3834 by the close, but it was off the five-week high of 1.39.13 against the dollar touched on Tuesday. Elsewhere, WTI prices rose to $73.11/bbl as US inventories run low and storms disrupt US production.

For the day ahead, traders are looking to the commodity currencies for action. First up, we have New Zealand's Gross Domestic Product for the second quarter. ''We expect that this data will cap off what was an incredible run of positive data, in a June quarter where unemployment fell to 4% and annual CPI inflation reached 3.3% – above the RBNZ’s 1-3% target range,'' analysts at ANZ Bank said.

''We’ve pencilled in a 1.2% q/q lift in production GDP, which would see annual growth come in at 16.2% – but that’s mostly due to the very weak base from lockdown in 2020. We’re expecting that growth was also pretty broad-based across primary, goods, and services industries.''

Much later in the day, Aussie Employment data will be the focus. ''Employment likely fell in August but less than consensus. While job vacancies have declined, they remain at a very high level, hinting at resilience in labour demand,'' analysts at TD Securities said. 

''Moreover, we think fiscal support is likely to partly offset some job losses as the adjustment to the labour market occurs through reduced hours worked (as seen in July), and not job losses.''

USD/CAD

Overview
Today last price 1.2627
Today Daily Change -0.0068
Today Daily Change % -0.54
Today daily open 1.2695
 
Trends
Daily SMA20 1.2647
Daily SMA50 1.2586
Daily SMA100 1.2393
Daily SMA200 1.2525
 
Levels
Previous Daily High 1.2698
Previous Daily Low 1.2601
Previous Weekly High 1.2762
Previous Weekly Low 1.2518
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.2661
Daily Fibonacci 61.8% 1.2638
Daily Pivot Point S1 1.2631
Daily Pivot Point S2 1.2567
Daily Pivot Point S3 1.2534
Daily Pivot Point R1 1.2729
Daily Pivot Point R2 1.2762
Daily Pivot Point R3 1.2826

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.

EUR/USD News

GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.

GBP/USD News

Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures