The Dollar skyrocketed against the Canadian Loonie in another highly volatile trading day to an overnight high at 1.4272 before easing to settle at 1.4225 in late New York. USD/CAD opened in Asia at 1.4095, initially trading lower to 1.4064 before the big bounce. An overnight 5.6% slump in Brent Crude Oli prices to USD 25.60 from USD 26.50 and risk-off combined like a one-two punch to the Canadian Loonie.
USD/CAD has immediate resistance at 1.4270 (overnight high) followed by 1.4300-10. Immediate support can be found at 1.4170 and 1.4120. Canadian Manufacturing PMI dropped to 46.1 in March from February’s 51.8. The New York based Commodity Research Bureau Index (CRB Index), an index composed of various commodities, Canadian Dollar correlated, slumped 2.7% lower to 125.80, its weakest since 1999. Expect another wild ride in the Loonie with traders focussing on US employment reports ahead.
Look for a likely trading range today of 1.4120-1.4320. Let’s get ready to rumble in this puppy, it’s a good range to trade.
