The US dollar picked up some support against the Canadian dollar in today’s trade after three consecutive losing sessions. The undertone remains somewhat soft for the greenback.
The Dollar Index didn’t manage to hold above 98, which along with Trump’s rate comments and impeachment news could be bearish for the US dollar.
Still, the Canadian dollar gave back some gains against the US dollar but overall movements among major currencies are very tight and on very low volatility in today’s session.
Risk appetite among market participants is mixed (NZD over-performing; CHF, S&P 500 and Gold falling) as investors are awaiting clearer news on the direction of the “phase one” trade negotiations.
The mood in China was pessimistic after Trump said there was no agreement on lowering tariffs and that he had not agreed to roll back tariffs on Chinese goods. The unclear direction of the talks weighed on Asian markets and led to very low volatility in today’s trade.
From Canada, we got the change in monthly manufacturing sales for September, which came in better than expected at -0.2%. Market forecasts were set at a -0.5% fall.
The US dollar faced some buying pressure at the November 01 high of 1.3296 — a level that also aligned with the 50% Fib. To the upside, the November 14 high of 1.3270 acts as an important resistance level, while the 1.32 round-number and the mid 1.31s act as intermediary support levels to the downside.
The technical picture is neutral to slightly bearish with the 200-day MA near the current spot price and a “Doji” candle forming on the weekly chart. As of 3:30 p.m. London time, the USD/CAD pair traded at 1.3222.