Daily Currency Update

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The Loonie trades lower on weak crude oil prices

CAD - Canadian Dollar

The USD/CAD pair is trading 0.11 percent higher following the 1.6% fall in the price of crude oil in the futures market. Crude oil prices have almost completely retracted their spike following the attack on two major oil facilities in Saudi Arabia following the Saudi Prince issuing pacifying comments that a, "…political and peaceful solution is better than a military one." He also warned that a war between his country and Iran would lead to a, "…total collapse of the global economy." However, he blames Iran for the attacks, but prefers a "political and peaceful" approach.

The most important news this week that might influence the Loonie is the release of GDP numbers tomorrow and the trade balance on Friday. Technically speaking, the USD/CAD pair is compressed at the time of this writing, trading at 1.3255, with a first resistance level at 1.3269 and support level at 1.3232.

Key Movers

The U.S. dollar index increases 0.22 percent this morning, which is probably linked to it being the final day of the third quarter. The greenback is not waiting around and has pushed up to a fresh two-year-high to extend the bullish ramp that started last week.

Trump officials issued a partial denial of reports of limits on U.S. investments in Chinese companies and financial markets. A spokeswoman for Steven Mnuchin said there are no current plans to stop Chinese firms listing on U.S. exchanges. As already known by most market participants, last Friday, Bloomberg News reported that Trump administration officials are considering delisting Chinese stocks from U.S. indices. As a consequence, currencies such as the Chinese Yuan, Aussie dollar, Kiwi dollar, Canadian dollar, and Mexican peso were hit last Friday.

According to Bloomberg, market participants and most Australian economists expect the Reserve Bank of Australia to cut interest rates for the third time in five months on Tuesday. However, the bank's governor, Philip Lowe, is giving mixed messages. Market participants see an 80 percent chance of the cash rate going to 0.75 percent, while 19 of 25 economists surveyed expect a cut tomorrow.

New Zealand's dollar declined against all G-10 peers after business confidence fell to a fresh 11-year low. At the same time, market participants increased their record net-short bet against the New Zealand dollar according to the CFTC data snapshot taken last Tuesday.

Hong Kong suffers one of the most violent days since the protests started. The USD/HKD pair trades at 7.8390 this morning.

Expected Ranges

USD/CAD: 1.3208 - 1.3277 ▼

EUR/CAD: 1.4424 - 1.4467 ▼

GBP/CAD: 1.6204 - 1.6356 ▲

AUD/CAD: 0.8915 - 0.8986 ▲

NZD/CAD: 0.8259 - 0.8347 ▼