USD/CAD flat after trade balance releases

The Canadian dollar is almost unchanged on Tuesday, after starting the week with gains. USD/CAD is trading at 1.3260, up 0.04% on the day. On the fundamental front, both Canada and the US released their respective trade balances for August. Canada’s trade deficit edged lower to C$2.4 billion, down from C$2.5 billion. Over in the US, the trade deficit climbed to $67.1 billion, up from $63.6 billion beforehand. Both exports and imports increased, as the US economy continues to recover from the sharp downturn of earlier this year.

Next – FOMC minutes

Investors are keeping a close eye on the FOMC minutes, which will be released at Wednesday at 18:00 GMT. The buzz around the Federal Reserve continues to be its recent change in monetary policy. The Fed stance on inflation is now “average inflation targeting”, which means that the Fed is no longer committed to raising interest rates if inflation overshoots the 2 percent level. At the September policy meeting, FOMC members noted that they don’t expect rates to rise until 2023, and predictably, this has soured sentiment towards the US dollar, which continues to struggle against the G-10 currencies. If the tone of the minutes echoes the dovish view that was expressed at the policy meeting, the US dollar could find itself under pressure on Wednesday.

USD/CAD Technical

  • 1.3242 is a weak support line. This is followed by support at 1.3227
  • 1.3289 is the next resistance line. Above, there is resistance at 1.3321. This is followed closely by the 20-day MA line, which remains relevant

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.
Kenny Fisher

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