Weak Durable Goods Data Sinks US Dollar

Posted by Andrew McGuire - Agility Forex

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usdcad-25th-march-1024x408

USDCAD Overnight Range 1.2475-1.2520   

US Durable Goods orders were far worse than expected, dropping 1.4% vs. forecasts of a rise of 0.2%. Crummy weather along the US East Coast and Mid-West may have played a factor, but for now, no one cares and the US dollar is offered.

USDCAD remains range-bound. Overnight, it drifted aimlessly as traders licked their wounds following Tuesday’s whip-saw day. Risks are seemingly balanced between additional US dollar selling on an FOMC rate hike delay and soft oil prices and weak economic data for Canada. Bank of Canada governor, Poloz speaks Thursday, in the UK, on Central Bank Credibility and Policy Normalization.That speech may not be a good thing for the Loonie as the domestic economic data has been weak and oil prices low.

Asian markets ignored comments from Chicago Fed President, Evans arguing (as usual) for a rate hike delay.Kiwi shrugged off a weaker than expected trade report and moved higher while JPY traders are just waiting for year-end (March 31) to pass. EURUSD moved higher in Europe, supported to a degree by a positive IFO report from Germany.

USDCAD technical Outlook

The intraday USDCAD technicals are bearish while trading below 1.2520 but need to break through support in the 1.2440-60 area to extend losses to 1.2340. A break above 1.2520 targets 1.2550 and then 1.2620.  For today, USD support is at 1.2480, 1.2460 and 1.2440.  Resistance is at 1.2520, 1.2550 and 1.2590

Today’s Range 1.2450-1.2520

Larger Chart

usdcad-25th-march-1024x408

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