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USDCAD Consolidates Push Back Above 1.32

CAD
  • Fresh from Friday's widest range in a month (134 pips), USDCAD has held a particularly tight 27 pip range (and with its brief low of 1.3205 only coming on erroneous oil headlines) to consolidate a move back above 1.32.CAD outperforms AUD and NZD following softer China GDP data but otherwise is at best on a par or lagging other G10 FX on the day.
  • Currently 1.3222, resistance seen at 1.3251 (20-day EMA) after the corrective bounce, whilst support is seen at 1.3084 (1.618 proj of Apr 28–May 8–May 26 price swing).
  • CAD outperforms AUD and NZD following softer China GDP data but otherwise is at best on a par or lagging other G10 FX on the day.
  • GS on CAD: “In an environment where the Dollar is weakening due to cooler inflation, CAD is likely to see headwinds on crosses. And while USD/CAD should still move lower on a weaker Dollar, CAD would not be our preferred long to capture USD weakness given its high beta to the currency”.

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