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9 Aug 2013
USD/CAD eyes the 1.0300 handle again
FXstreet.com (Barcelona) - USD/CAD bottomed out at the 1.0300 figure in NA, inched into 1.0330 territory overnight and has since resumed the downside to test the 1.0300 handle again.
“... we get the housing starts data for July (mkt 190K, TD 205K) but the focus will be on the July employment report. The hangover from the +95K job boon in May is likely to have carried over into a second month so we’re looking for a flat print in July (mkt +10K). This forecast is broadly consistent with the lagged impact of slower economic growth through the middle of the year and reflects a number of offsetting influences. Surveys of hiring intentions suggest firms remain cautious in adding to payrolls and a number of modest layoff notices released over the month reduces the probability of a renewed surge in the labour market. It is also possible that there will be residual disruptions to employment from the floods in Southern Alberta, though this impact may be mitigated by temporary hiring associated with the clean-up and early reconstruction efforts. The resolution of the construction strike in Quebec may also lift employment as projects make up for lost time while a return to more seasonal weather patterns across portions of the country help revive tourism and employment in the food and accommodation industries. On balance, we are inclined to expect greater weakness in the service sector and a stronger performance among good-producing industries”, said research teams at TD Seurities for todays data that comes in this aternoon in the NA open.
USD/CAD attempting downside
USD/CAD is wrestling with the 1.0300 handle within 20 pips. The 20 dma is 1.0341, the 50 dma is 1.0362 and the 200 dma is 1.0146. RSI (9) reads 45.33. Supports are ascending 1.0170, 1.0245, 1.0265. Spot reads 1.0317 while resistances are 1.0305, 1.0324 1.0348 1.0405 1.0430 and 1.0445.
“... we get the housing starts data for July (mkt 190K, TD 205K) but the focus will be on the July employment report. The hangover from the +95K job boon in May is likely to have carried over into a second month so we’re looking for a flat print in July (mkt +10K). This forecast is broadly consistent with the lagged impact of slower economic growth through the middle of the year and reflects a number of offsetting influences. Surveys of hiring intentions suggest firms remain cautious in adding to payrolls and a number of modest layoff notices released over the month reduces the probability of a renewed surge in the labour market. It is also possible that there will be residual disruptions to employment from the floods in Southern Alberta, though this impact may be mitigated by temporary hiring associated with the clean-up and early reconstruction efforts. The resolution of the construction strike in Quebec may also lift employment as projects make up for lost time while a return to more seasonal weather patterns across portions of the country help revive tourism and employment in the food and accommodation industries. On balance, we are inclined to expect greater weakness in the service sector and a stronger performance among good-producing industries”, said research teams at TD Seurities for todays data that comes in this aternoon in the NA open.
USD/CAD attempting downside
USD/CAD is wrestling with the 1.0300 handle within 20 pips. The 20 dma is 1.0341, the 50 dma is 1.0362 and the 200 dma is 1.0146. RSI (9) reads 45.33. Supports are ascending 1.0170, 1.0245, 1.0265. Spot reads 1.0317 while resistances are 1.0305, 1.0324 1.0348 1.0405 1.0430 and 1.0445.