USD/CAD – Greenback Dips Below 1.09

USD/CAD is steady in Wednesday trade, as the pair trades below the 1.09 early in the North American session. This is the first time that USD/CAD has been in 1.08 territory in over a week. In the US, it’s a quiet day, highlighted by Crude Oil Inventories. There are no releases out of Canada on Wednesday.

There was more good news on the US employment front, as JOLTS Job Openings jumped to 4.46 million, up sharply from 4.01 million a month earlier. This easily beat the estimate of 4.04 million, and comes on the heels of a positive Nonfarm Payrolls last week. We’ll get a look at Unemployment Claims on Thursday, with the markets expecting a slight improvement compared to the previous release.

There has been only one Canadian release so far this week. Canadian Housing Sales hit 198 thousand in May, easily beating the estimate of 185 thousand. This points to strong activity in the Canadian housing sector, a critical component of economic growth. We’ll get look at Manufacturing Sales, the highlight event of the week, on Friday.

 

USD/CAD for Wednesday, June 11, 2014

USD/CAD June 11 at 14:00 GMT

USD/CAD 1.0873 H: 1.0905 L: 1.0870

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0706 1.0775 1.0852 1.0906 1.1000 1.1094

 

  • 1.0906 has reverted to a resistance line as USD/CAD trades at lower levels. The round number of 1.1000 is stronger.
  • 1.0852 is providing weak support. 1.0775 is stronger.
  • Current range: 1.0852 to 1.0906

Further levels in both directions:

  • Below: 1.0852, 1.0775, 1.0706 and 1.0678
  • Above: 1.0906, 1.10, 1.1094 and 1.1177

 

OANDA’s Open Positions Ratio

USD/CAD ratio is almost unchanged on Wednesday. This is not consistent with the pair’s movement, as the Canadian dollar has gained ground. The pair has a slight majority of long positions, indicative of trader bias towards the US dollar posting gains.

The Canadian dollar continues to post gains on Wednesday. The pair has edged lower in the North American session.

 

USD/CAD Fundamentals

  • 14:30 US Crude Oil Inventories. Estimate -1.3M.
  • 17:01 US 10-year Bond Auction.
  • 18:00 US Federal Budget Balance. Estimate -132.8B.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.