The Canadian dollar is weaker this morning when valued against the Greenback. However the markets remain quite optimistic over the U.S-China trade talks, and stronger risk appetite is bullish for the Canadian dollar. The U.S. has recently threatened to impose stiff new tariffs as of March 1, if the deadline is moved, we can expect the Canadian dollar to respond with strong gains.
On the data front there are no scheduled releases today. All eyes will be on Thursdays releases. In the U.S., key events include durable goods and unemployment claims, and Canada will release ADP nonfarm payrolls.
From a technical perspective, the USD/CAD pair is currently trading at 1.3177. We continue to expect support to hold on moves approaching 1.3140 while now any upward push will likely meet resistance around 1.3220.