USD/CAD has posted modest gains on Tuesday, as the pair is trading above the 1.09 line in the North American session. On the release front, Tuesday’s numbers were mixed. CPI and Core CPI posted weak gains of 0.1%, while Building Permits and Housing Starts improved in July and beat their estimates. There are no Canadian releases on Tuesday.
US housing numbers were sharp on Tuesday. Building Permits improved to 1.05 million, beating the estimate of 1.00 million. Housing Starts jumped to 1.09 million, easily beating the estimate of 0.97 million. Meanwhile, inflation numbers in the US remain at very low levels. On Tuesday, CPI and Core CPI, the primary gauges of consumer inflation, both posted paltry gains of 0.1%. These weak readings come on the heels of PPI, a manufacturing inflation index, which also came in at 0.1% last month. Weak inflation is one reason why the Federal Reserve is in no rush to raise interest rates, as low inflation points to slack in the economy.
Financial leaders and central bankers from around the world will gather in Jackson Hole, Wyoming for a conference which starts on Friday. This will be Janet Yellen’s first appearance as Fed chair at the conference, and will undoubtedly be the star of the show. Yellen is expected to discuss the employment market rather than monetary policy, but the markets will be listening closely for any hints as to an interest rate hike.
USD/CAD for Tuesday, August 19, 2014
USD/CAD August 19 at 15:10 GMT
USD/CAD 1.0914 H: 1.0919 L: 1.0890
- USD/CAD has been edging higher throughout the day. The pair pushed above the 1.09 line late in the European session.
- 1.0961 is an immediate resistance line. 1.1004 is next.
- 1.0852 is providing support. 1.0775 follows.
- Current range: 1.0852 to 1.0961
Further levels in both directions:
- Below: 1.0852, 1.0775, 1.0678 and 1.0588
- Above: 1.0961, 1.1004, 1.1124 and 1.1278
OANDA’s Open Positions Ratio
USD/CAD ratio is pointing to gains in long positions in Tuesday trade. This is consistent with the pair’s movement, as the US dollar has posted gains. The ratio is dominated by long positions, indicative of trader bias towards the US dollar continuing to move higher.
- 12:30 US Building Permits. Estimate 1.00M. Actual 1.05M.
- 12:30 US CPI. Estimate 0.1%. Actual 0.1%.
- 12:30 US Core CPI. Estimate 0.2%. Actual 0.1%.
- 12:30 US Housing Starts. Estimate 0.97M. Actual 1.09M.
* Key releases are in highlighted bold.
*All release times are GMT