USD/CAD: Canadian Dollar Dips, Markets Await U.S. Consumer Confidence
Kenny Fisher | Mar 27, 2018 09:17
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 U.S., CB Consumer Confidence is expected to rise to 131.2 points. On Wednesday, the U.S. 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 U.S. as well, as durable good reports beat their estimates. A stronger U.S. 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 U.S. tariffs on Chinese products. China has objected to the U.S. claim that the tariffs were imposed on national security grounds. Rather, China says that the U.S. simply applied trade restrictions in order to protect domestic steel producers. Last week, President Donald Trump announced that the U.S. 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.
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
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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.
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