The Loonie lifted against the broadly-based weaker US Dollar, stronger Gold prices and a tentative rebound in Brent Crude Oil prices. While the OPEC and Russia managed to agree a production cut of 9.7 million barrels a day, which is the deepest cut ever, it still fell short of investor’s expectations.
USD/CAD opens up in early Sydney at 1.3880 from its 1.3900 New York close. Overnight low traded was 1.38557, the weakest for USD/CAD in a month.
The week’s big event for the Canadian Dollar is the Bank of Canada’s rate policy meeting on Wednesday (early Thursday Sydney). Most economists are expecting the BOC to keep its Overnight Rate at 0.25%. FX Street’s economic calendar have left their forecasts of the Overnight rate blank which suggests there is the slight chance of a cut. Latest economic data out of Canada have disappointed and gives the BOC a slightly dovish bent.
USD/CAD has immediate support at 1.3850 followed by 1.3820 and 1.3790. Immediate resistance can be found at 1.3900 followed by 1.3950. With the Bank of Canada’s interest rate policy meeting this week expect a likely range of 1.3950-1.4150. Prefer to buy dips.