The Canadian Dollar (CAD) is little changed on the session, leaving it as a marginal outperformer alongside the Australian Dollar (AUD) on a day where the US Dollar (USD) is trading a little higher overall, Scotiabank’s chief FX strategist Shaun Osborne notes.
USD seems unable to extend much above 1.37
“Market-moving news is in short supply for the CAD at the moment and the variables that might affect the currency are mostly stable. The CAD is trading a little below my fair value estimate (1.3597). The divergence is not significant but may help limit pressure on the CAD in the short run. More range trading between 1.36/1.37 looks likely for spot in the short run.”
“USD/CAD is well-supported around the 1.36 area, with the recent range base bolstered by the 200-day MA. Equally, though, the USD seems unable to extend much above 1.37. There is resistance at 1.3705/10 and 1.3750/55. Trend signals are mixed and weak, supporting the outlook for more flat, sideways range trade in the near term.”