Home Daily Commentaries The Loonie trades slightly higher following crude oil uncertainty and a weaker U.S. dollar

The Loonie trades slightly higher following crude oil uncertainty and a weaker U.S. dollar

Daily Currency Update

CAD - Canadian DollarThe USD/CAD pair is trading at 1.3257, representing a 0.05 percent fall (stronger Loonie). The Loonie might trade based on technicals only this week in the absence of economic releases. Technically speaking, along with U.S. dollar weakness, the USD/CAD has had selling pressure since last Friday and it has fallen to around 1.3300 handle. A strong resistance level is 1.3260, which is being tested at the time of this writing, followed by another resistance level of around 1.3280. On the other side, key support levels are 1.3243, 1.3231, and 1.3221 for today’s trading session. Crude oil continues trading amid tensions between the U.S. and Iran and doubts over how fast Saudi Arabia can restore lost output. The Loonie usually gets a boost from a firm price in crude oil.

Key Movers

The U.K. Supreme Court in a unanimous ruling declared Prime Minister Boris Johnson's decision to suspend Parliament until mid-October unlawful. The defeat of Boris Johnson is a boost for MPs seeking to prevent a no-deal Brexit. As a consequence, the GBP/USD pair rises 0.55 percent at the time of this writing. Australia's Central Bank Chief Philip Lowe reiterated that his economy is at a "gentle turning point" and gave little indication that an interest-rate cut was in sight, disappointing economists expecting one within days and causing the AUD/USD pair to bounce 0.35 percent higher, trading at 0.6795 at the time of this writing. Lowe added, "…at our board meeting next week … we will again take stock of the evidence." The Reserve Bank of New Zealand will announce its latest policy decision tonight. After an aggressive cut at the last meeting, rates are expected to stay on hold. However, this week, the Kiwi dollar has been one of the best-performing currencies. Just today, the NZD/USD pair has increased 0.5 percent, trading at 0.6322. Last Friday, it touched a four-year low of 0.6255, and it has risen by more than 1 percent since then. The outperformance of the Kiwi is due to market participant positioning flows ahead of Wednesday's RBNZ policy meeting.

Expected Ranges

  • USD/CAD: 1.3235 - 1.3270 ▼
  • EUR/CAD: 1.4550 - 1.4617 ▼
  • GBP/CAD: 1.6415 - 1.6603 ▲
  • AUD/CAD: 0.8950 - 0.9020 ▲
  • NZD/CAD: 0.8260 - 0.8400 ▲