USD/CAD: Buyers aim for 1.3330 amid weakness in commodities

11.02.2019
  • The USD/CAD pair trades around 1.3275 at the start of Asian trading on Monday.
  • China returned to trading after a weeklong holiday to confront challenges at home.
  • 1.3330 seem immediate resistance for the pair with 1.3230 acting as nearly support.
  • The USD/CAD pair trades little positive around 1.3275 during the early Asian session on Monday. The pair refrained to extend Friday’s gains as China’s return to markets after a weeklong holiday was welcomed by challenges at the US-China trade talks and speculations of weaker growth. Additionally, soft crude prices also negatively affected the Canadian Dollar. The Canadian Dollar, sometimes known as Loonie, rose across the board on Friday after Statistics Canada reported January month employment change beating 6.5K market consensus by rising to 66.8K. Loonie buyers refrained to consider the 5.8% unemployment rate against 5.7% forecast and 5.6% prior. At the start of present week, China returned to trading after a weeklong Lunar New Year holidays. However, its welcome wasn’t upbeat as the latest developments at the US-China trade talks aren’t positive. Recently, the White House Adviser Larry Kudlow said the US & Chinese trade talks are still far from reaching any solution whereas the US President Donald Trump turned down any scopes of meeting his Chinese counterpart unless the 90-day grace period of talks concludes. On the other hand, China’s Economic Information Daily expects further deterioration into the economic growth to 6.3% during 2019 after declining to 28 year low of 6.6% last year. With the challenges at trade and China’s economic growth trigger weakness of the commodity front, the commodity currencies, like Australian Dollar (AUD), New Zealand Dollar (NZD) and Canadian Dollar (CAD) struggles at the week start. Adding to this, Crude’s weakness due to the USD recovery and increasing stockpile from the US continue to negatively affect the CAD as it being the largest export item for Canada.While challenges to China & weak Crude prices drag the CAD downwards, USD/CAD buyers aim to confront Friday’s high near 1.3330. USD/CAD Technical Analysis USD/CAD needs to overcome the 1.3330 upside barrier in order to aim for 1.3380 resistance level. Should there be further advances past-1.3380, 1.3440 and 1.3470 may regain market attention. On the downside, 1.3230 and 1.3200 can offer immediate support to the pair before highlighting the 1.3170 rest-point. Given the quote’s extended declines under 1.3170, 1.3120 & 1.3065 might flash on bears’ radar.

    Original from: www.fxstreet.com

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