The Canadian Loonie bucked the trend of higher risk currencies (AUD, NZD) with the USD/CAD pair gaining a modest 0.1% to 1.3587 from 1.3575. Trading in this currency pair was muted due to a holiday in Canada to observe its Canada day yesterday. The Canadian Dollar will take its cue from its southern neighbour the US, with the spotlight on the US Payrolls report. Canada’s Trade Balance and Manufacturing PMI’s are due out tonight as well. Canada’s recovery has been slow and they will keep their borders with the United States closed until the rapid rise in US infections slow down and the country gets a better grip on the Covid-19 crisis.
USD/CAD traded to an overnight high at 1.36014. Immediate resistance lies at 1.3600 followed by 1.3650. Immediate support can be found at 1.3550 followed by 1.3520. Look for consolidation with a likely range of 1.3550-1.3650 until the release of the US Payrolls report and Canada’s data. Prefer to buy on any dips toward 1.3500.
