USD/CAD has extended its recent.......>

DOLLAR-CANADA: USD/CAD has extended its recent move lower in Asia-Pacific trade,

last ~40 pips softer at C$1.3231, just off of the intraday low at C$1.3228. The

weaker USD/generally risk-on theme drove the latest move lower, as WTI broke

above $50.00. 

- Bears remain in the driving seat after last week's break below channel

support, and look for consolidation below the nearby cloud top, which would

allow them to target the 100-DMA & Dec 3 low at C$1.3179/60. Bulls need to

recover the 50% retracement level & broken channel base at C$1.3505/07 to change

the outlook in their favour, with nearer term resistance noted at yesterday's

high of C$1.3323.

- Canadian focus falls on today's BoC MonPol decision. BBG's WIRP function

(based on OIS) prices in a ~85% chance of no change (marginal pricing is for a

cut in light of the recent global economic slowdown worry & speculation

surrounding the Fed's monetary policy path), and only one of those surveyed is

looking for a hike from the BoC, while the remainder look for no change. The

meeting will include the Bank's quarterly economic forecasts & press conference.