USD/CAD - Little Movement As U.S. Manufacturing Numbers Mixed

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 |  Includes: FXC, UDN, UUP
by: Dean Popplewell

By Kenny Fisher

USD/CAD has edged lower in Tuesday trading, as the pair trades in the high-1.11 range. In the US, manufacturing numbers was a mix, as Durable Goods Orders posted a strong gain, but Core Durable Good Orders came in short of the estimate.There are no Canadian releases for the remainder of the week.

In the US, manufacturing data was a mix on Wednesday. Core Durable Goods Orders posted a weak gain of 0.2%, shy of the estimate of 0.3%. Durable Goods Orders looked sharper, jumping 2.2% last month. This broke a mini-streak of two straight declines, and easily surpassed the estimate of 1.1%. On Tuesday, New Home Sales missed the forecast but CB Consumer Confidence climbed to a six-year high.

The crisis in the Ukraine is far from over, but at least the danger of further military activity has receded, for now. The US and its European allies have imposed limited sanctions on Russia after its annexation of Crimea, but are holding off on additional measures if Russia does not take further military action. The lack of a tough response from the West reflects divisions within Europe over how strong a stance to take against Moscow. Meanwhile, the Ukraine has signed an association agreement with the EU and is seeking a loan package of up to $20 billion from the IMF. Ukraine's economy has suffered badly after months of political turmoil and the country is in dire need of financial assistance.

USD/CAD for Wednesday, March 26, 2014

Forex Rate Graph 21/1/13

USD/CAD March 26 at 15:45 GMT

USD/CAD 1.1156 H: 1.1169 L: 1.1124

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0906 1.1000 1.1094 1.1177 1.1319 1.1496
Click to enlarge
  • USD/CAD is showing little movement in Wednesday trade. The pair dropped to a low of 1.1124 early in the European session.
  • On the downside, there is support at 1.1094. There is stronger support at the key level of 1.1000.
  • 1.1177 has switched to a resistance role and is under strong pressure. It is followed by resistance at 1.1396.
  • Current range: 1.1094 to 1.1177

Further levels in both directions:

  • Below: 1.1094, 1.1000, 1.0906 and 1.0852
  • Above: 1.1177, 1.1319, 1.1496, 1.1639 and 1.1876

OANDA's Open Positions Ratio

USD/CAD ratio is pointing to gains in long positions in Wednesday trade, continuing the trend we saw a day earlier. This is not consistent with what we are seeing from the pair, as the US dollar has edged lower. The ratio is currently almost evenly split between short and long open positions, indicating a lack of trader as to which direction USD/CAD will take.

USD/CAD continues to show little movement. The pair has edged lower in the North American session.

USD/CAD Fundamentals

  • 12:30 US Core Durable Goods Orders. Estimate 0.3%. Actual 0.2%.
  • 12:30 US Durable Goods Orders. Estimate 1.1%. Actual 2.2%.
  • 13:45 US Flash Services PMI. Estimate 54.2 points. Actual 55.5 points.
  • 14:30 US Crude Oil Inventories. Estimate 2.9M. Actual 6.6M.
  • 20:30 US Bank Stress Results.

*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.