USD/CAD – Slight Losses as US Consumer Confidence Misses Estimate

The Canadian dollar has posted slight gains on Tuesday, as USD/CAD trades slightly above the 1.16 line in the North American session. On the release front, there are no Canadian releases. In the US, today’s highlight was CB Consumer Confidence. The indicator improved to 92.6 points, shy of the estimate of 94.6 points.

With the US economy showing better numbers as we head into 2015, the US consumer is showing more optimism about the economy. On Tuesday, CB Consumer Confidence rose to 92.6 points, up from 88.8 a month earlier. Although this missed the estimate of 94.6, this was a solid reading which follows last week’s UoM Consumer Sentiment report. That indicator has been on an upward swing and hit 93.6 points in December, its highest level since February 2007. Consumer confidence numbers are closely watched, as increased confidence should translate into more spending by consumers, creating more jobs and strengthening economic activity.

USD/CAD for Tuesday, December 30, 2014

USD/CAD December 30 at 15:30 GMT

USD/CAD 1.1617 H: 1.1651 L: 1.1612

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.1414 1.1493 1.1580 1.1669 1.1723 1.1875

 

  • USD/CAD was flat in the Asian session. The pair has moved lower in the Asian and European sessions, putting some pressure on support at 1.1580.
  • 1.1580 has weakened in support as the pair trades at lower levels. Will USD/CAD break below this level? 1.1493 is stronger.
  • On the upside, 1.1669 is an immediate resistance line. 1.1723 is next.
  • Current range: 1.1580 to 1.1669

Further levels in both directions:

  • Below: 1.1580, 1.1493, 1.1414, 1.1278 and 1.1124
  • Above: 1.1669, 1.1723, 1.1875 and 1.1975

 

OANDA’s Open Positions Ratio

USD/CAD is pointing to gains in long positions on Tuesday. This is not consistent with the pair’s movement, as the Canadian dollar has posted gains on the day. The ratio has a majority of short positions, indicative of trader bias towards the Canadian currency continuing to move to higher ground.

USD/CAD Fundamentals

  • 14:00 US S&P/CS Composite-20 HPI. Estimate 4.4%. Actual 4.5%.
  • 15:00 US CB Consumer Confidence. Estimate 94.6 points. Actual 92.6 points.

*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.