The US Dollar bounced off its lows against the Canadian Loonie on broad-based Greenback strength and a shaky risk appetite. Steady oil prices, which saw a modest rally failed to lift the Canadian Dollar. USD/CAD closed in New York at 1.3605 on Friday (1.3630 opening), and an early Asian open at 1.3625. Canada’s Capacity Utilisation dropped to 79.8% in May from an upwardly revised April figure of 81.4%, missing forecasts at 80.1%. Canada’s economic data has underwhelmed expectations. This week ahead sees Canadian Retail Sales (Friday).
The market’s risk-off stance should keep a bid on the USD/CAD pair with chances of a topside rally. USD/CAD has immediate support at 1.3580 followed by 1.3540 and 1.3500. Immediate resistance can be found at 1.3670, 1.3720 and 1.3800. Look for consolidation within a likely range today of 1.3580-1.3720. Prefer to buy dips.