Daily Currency Update

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The Loonie falls without the release of economic data and bets are increasing on a more dovish BoC next week.

CAD - Canadian Dollar

The Loonie continues to fall for a second day following yesterday’s U.S. dollar gains and the signing of the U.S. and China phase-one trade agreement in Washington. The Loonie loses 0.13 percent against the Aussie dollar, 0.15 percent against the Pound, and 0.03 percent against the U.S. dollar on a day where there is no Canadian economic data being released. Technically speaking, the USD/CAD has important an support at 1.3050 and key resistance levels at 1.3075, followed by 1.3120. For tomorrow, data from existing home sales will be released at 9 am EST.

Key Movers

The Greenback pares its advance after U.S. consumer prices rose 0.2 percent in December, less than the 0.3 percent estimated, and after core prices came in at 0.1 percent in the same month versus the 0.2 expected. The EUR/USD pair trades 0.2 percent lower, the EUR/CAD pair trades lower, and the EUR/AUD percent trades 0.12 percent lower. The USD/JPY pair is marginally higher, around 110.00, but it was at 110.08 before the CPI numbers were released. The EUR/USD is erasing some loses at this moment trading at 1.1121.

The Australian dollar has been trading similarly to the Chinese Yuan over the last few months; however, the relationship is starting to fade away. As of today, the USD - Yuan currency pair is touching lows (strong Yuan), but the AUD/USD pair is trading in a pattern where it is reaching lower highs, which means that the Aussie dollar does not follow it anymore. Instead, bets that the RBA will restart easing of their monetary policy are increasing. At this moment, the AUD/USD trades at 0.6898.

Expected Ranges

USD/CAD: 1.3050 - 1.3083 ▲

EUR/CAD: 1.4522 - 1.4566 ▼

GBP/CAD: 1.6919 - 1.7042 ▲

AUD/CAD: 0.9009 - 0.9067 ▲

NZD/CAD: 0.8602 - 0.8655 ▼