USD/CAD - Loonie on Slow, Steady Decline

There is no economic data to report on for Canada today. The Canadian dollar has been on a slow but steady decline against its American counterpart since July 27 or eight straight trading days. Resistance with the USD/CAD sits at $1.2714 with support at $1.2622. The loonie has been in favour since the Bank of Canada raised rates and continues a hawkish view, net longs for the loonie having reached four-year highs.

The greenback is trading lower against most of its G10 trading peers. Oil is higher as oil producers meet in Abu Dhabi to discuss the production cut agreement and to address those who have not complied with the agreement. The most volatile currencies overnight is the South African Rand after President Zuma fired his finance minister and the opposition files a non-confidence vote. The rand is expected to move higher if the South African President is ousted from office. At 10 a.m. investors will learn about the JOLTS job openings. This is a fundamental that the Federal Reserve monitors closely.

Experts expect a range today of $1.2625 to $1.2715

U.K. House Prices in July released yesterday by Halifax and were mainly as expected printing at 2.1% 3 million/y and 0.4% m/m. No fundamentals out today, but the meat of the release will occur on Thursday when Industrial and Manufacturing Production, Trade Balance and Construction Output release. The pound is currently trading at $1.6503.

Analysts expect a range today of $1.4929 to $1.5009

German Industrial Production fell below expectations of 0.2% m/m and 3.7% y/y and printed at -1.1% m/m and 2.4% y/y. Euro-zone Sentix Investor Confidence in August printed better than expected at 27.7. More disappointing news from Germany as its Trade Balance in June fell below expectations of 23.0 billion and printed at 22.3 billion. The euro is currently trading at $1.4977.

Traders expect a range today of $1.6444 to $1.6532

The Australian dollar is trading relatively flat this morning as we head into the North American trading session. Positive Australian NAD business confidence released last night was overshadowed by disappointing Chinese export and import data. Australian NAB business confidence jumped to a reading of 12 from the previous figure of 8. However, both Chinese exports and imports missed the target with exports coming in at 11.2% y/y vs. 14.8% expected and imports coming in at 14.7% y/y vs. 22.6% expected. This will have a negative impact for the Aussie as it could reignite concerns over China’s external demand.

Oil (WTI): $49.51 U.S. per barrel

Gold: $1,262.31 U.S. per ounce

Silver: $16.39 U.S. per ounce

Copper: $2.9036 U.S. per tonne

Dollar Index: 93.19

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