The US Dollar rallied off an overnight and 6-week low against the Canadian Loonie at 1.38502 to 1.3942 in late New York, a gain of 0.48%. Despite the overnight climb in West Texas Intermediate Oil (WTI) by 28%, the USD/CAD pair followed the lead of other commodity currencies. Canada’s February GDP report was little changed with a 0.0% print (from 0.1%). The report was prior to the country’s lockdown. The key data for the Canadian Loonie is next week’s Canadian Payrolls report.
USD/CAD currently trades slightly higher at 1.3959 in Asia on renewed fears of a trade war between the US and China following President’s Trumps comments. The strong rebound in the US Dollar against the commodity currencies (AUD, NZD) should see the USD/CAD trend higher.
USD/CAD has immediate resistance at 1.3970 followed by 1.4010 and 1.4050. Immediate support can be found at 1.3930 followed by 1.3870. Look for a likely grind higher with a likely range of 1.3920-1.4050 today.