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4 Sep 2014
USD/CAD recovers to 1.0850
FXStreet (Edinburgh) -The greenback suffered the overall weaker figures from the US docket so far, dragging the USD/CAD to the 1.0820 neighbourhood.
USD/CAD softer post-US data
Softer results from US Initial Claims in the past week and Non farm Productivity during the second quarter have offset the positive outcome from the trade balance, showing that the trade deficit shrunk to $40.55 billion in July. Ahead in the day, services PMI gauged by Markit and the ISM Non-Manufacturing are due preceding speeches by FOMC members Mester and Powell. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, commented, “the intraday peak may already be in for USDCAD as the market tests short-term support at 1.0875/85. A push below 1.0875 in our session today will leave funds looking at a return to 1.0800/10”.
USD/CAD levels to watch
The pair is now retreating 0.37% at 1.0847 and a break below 1.0810 (low Aug.29) would expose to 1.0796 (low Jul.29). On the upside, the initial resistance aligns at 1.0956 (high Aug.27) ahead of 1.0998 (high Aug.26) and finally 1.1007 (high May 2).
USD/CAD softer post-US data
Softer results from US Initial Claims in the past week and Non farm Productivity during the second quarter have offset the positive outcome from the trade balance, showing that the trade deficit shrunk to $40.55 billion in July. Ahead in the day, services PMI gauged by Markit and the ISM Non-Manufacturing are due preceding speeches by FOMC members Mester and Powell. In the opinion of Shaun Osborne, Chief FX Strategist at TD Securities, commented, “the intraday peak may already be in for USDCAD as the market tests short-term support at 1.0875/85. A push below 1.0875 in our session today will leave funds looking at a return to 1.0800/10”.
USD/CAD levels to watch
The pair is now retreating 0.37% at 1.0847 and a break below 1.0810 (low Aug.29) would expose to 1.0796 (low Jul.29). On the upside, the initial resistance aligns at 1.0956 (high Aug.27) ahead of 1.0998 (high Aug.26) and finally 1.1007 (high May 2).