USD/CAD – Canadian dollar trading sideways, Poloz testimony next

The Canadian dollar is trading sideways in the Tuesday session. Currently, USD/CAD is trading at 1.3141, up 0.05% on the day. On the release front, there are no Canadian data indicators for a second straight day. Bank of Canada Governor Stephen Poloz will testify before the House of Commons Standing Committee on Finance. In the U.S, CB Consumer Confidence is expected to dip to 136.3 points. On Wednesday, Canada releases GDP and Poloz continues his testimony on Parliament Hill. The U.S will release ADP nonfarm payrolls.

A black October for the stock markets has badly shaken investor confidence, which has translated into softer demand for minor currencies like the Canadian dollar. The currency has slipped 1.73% in October, despite a Bank of Canada rate hike last week. At the forefront of geopolitical tensions is the trade war between the U.S and its major partners, particularly with China. Tensions between the world’s two largest economies show no signs of easing, and the Trump administration continues to threaten further severe tariffs on China. The U.S has also imposed steel tariffs on its two neighbors, Canada and Mexico. On Monday, Mexico’s deputy commerce minister said that Mexico would not sign the new USMCA pact, which replaces NAFTA, unless the U.S agreed to remove the tariffs against Mexico and Canada. We’ll get a look at Canadian GDP for August on Wednesday, which could be a market-mover. The economy expanded 0.2% in July, and the markets will be hoping for a stronger gain on Wednesday.

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USD/CAD Fundamentals

Tuesday (October 30)

  • 9:00 US S&P/CS Composite-20 HPI. Estimate 6.0%
  • 10:00 US CB Consumer Confidence. Estimate 136.3
  • 16:15 Canadian BoC Governor Poloz Speaks

Wednesday (October 31)

  • 8:15 US ADP Nonfarm Employment Change. Estimate 190K
  • 8:30 Canadian GDP
  • 16:30 Canadian BoC Governor Poloz Speaks

*All release times are DST

*Key events are in bold

USD/CAD for Tuesday, October 30, 2018

USD/CAD, October 30 at 9:15 DST

Open: 1.3134 High: 1.3145 Low: 1.3100 Close: 1.3141

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2831 12970 1.3067 1.3198 1.3292 1.3383

USD/CAD edged lower in the Asian session but recovered in European trade. The pair has ticked higher in North American trade

  • 1.3067 is providing resistance
  • 1.3198 is the next resistance line
  • Current range: 1.3067 to 1.3198

Further levels in both directions:

  • Below: 1.3067, 1.2970, 1.2831 and 1.2733
  • Above: 1.3198, 1.3292 and 1.3387

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.