USD/CAD – Canadian Dollar Dips, Markets Await US Consumer Confidence

The Canadian dollar has posted gains in the Tuesday session. Currently, USD/CAD is trading at 1.2881, up 0.30% on the day. On the release front, there are no Canadian indicators. In the US, CB Consumer Confidence is expected to rise to 131.2 points. On Wednesday, the US releases Final GDP.

Last week was positive for the Canadian dollar, which posted gains of 1.6 percent. The Canadian currency gained ground on Friday, after strong consumer data. CPI, ticked lower to 0.6% but beat the estimate of 0.4%. Retail Sales rebounded with a gain of 0.9%, after a sharp loss of 1.8% in the previous release. This reading matched the estimate. There was positive news in the US as well, as durable good reports beat their estimates. A stronger US economy means a larger demand for Canadian exports, which is good news for the Canadian dollar.

Concerns over a possible global trade war have eased this week, after China filed applications with the World Trade Organization regarding US tariffs on Chinese products. China has objected to the US claim that the tariffs were imposed on national security grounds. Rather, China says that the US simply applied trade restrictions in order to protect domestic steel producers. Last week, President Trump announced that the US would impose tariffs on up to $60 billion worth of Chinese imports, and China has threatened to retaliate. These moves sent the markets lower, as the specter of a downturn in the Chinese economy and the possibility of a global recession weighed on investor risk appetite.

Jump first ask later

What Trade War Fears?

USD/CAD Fundamentals

 Tuesday (March 27)

  • 9:00 US S&P/CS Composite-20 HPI. Estimate 6.1%
  • 10:00 US CB Consumer Confidence. Estimate 131.2
  • 10:00 US Richmond Manufacturing Index. Estimate 23
  • 11:00 US FOMC Member Raphael Bostic Speaks

 Wednesday (March 28)

  • 8:30 US Final GDP. Estimate 2.7%
  • 8:30 US Final GDP Price Index. Estimate 2.3%
  • 8:30 US Goods Trade Balance. Estimate -74.1B
  • 8:30 US Preliminary Wholesale Inventories. Estimate 0.6%
  • 10:00 US Pending Home Sales. Estimate 2.1%
  • 10:30 US Crude Oil Inventories
  • 12:00 US FOMC Member Raphael Bostic Speaks

*All release times are GMT

*Key events are in bold

USD/CAD for Tuesday, March 27, 2018

USD/CAD, March 27 at 7:50 EST

Open: 1.2843 High: 1.2882 Low: 1.2815 Close: 1.2879

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2687 1.2757 1.2850 1.2930 1.3050 1.3165

USD/CAD was flat in the Asian session and has posted losses in Euro[ea

  • 1.2850 has switched to a support role following gains by USD/CAD on Tuesday. It is a weak line
  • 1.2930 in the next resistance line
  • Current range: 1.2850 to 1.2930

Further levels in both directions:

  • Below: 1.2850, 1.2757 and 1.2687
  • Above: 1.2930, 1.3050, 1.3165 and 1.3260

OANDA’s Open Positions Ratio

USD/CAD ratio is unchanged in the Tuesday session. Currently, short positions have a majority (58%), indicative of USD/CAD reversing directions and moving lower.

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

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.