Jan. 5, 2021
After starting the day at 1.2779 USD/CAD dropped to 1.2652, hitting its lowest point in 2 years, it later recovered 24 pips and is now trading at 1.2677
Meanwhile, Canada RMPI (MoM) (Nov) released yesterday at 1:30 PM with a figure of 0.6, This is better than the previous number of 0.5. The United States Manufacturing PMI was released yesterday with a figure of 57.1, This is better than the previous number of 56.5. Released yesterday at 3:00 PM, United States's ISM Manufacturing Employment (Dec) showed an uptick, coming in at 51.5, up from the previous number of 48.4.
The Canadian Dollar fell below the 1.27 support zone and receded 20 pips away from it. At 1.2764, Canadian Dollar made an initial breakout below the 5 day Simple Moving Average. Medium-term trend indication has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line crosses below the MACD signal line. The lower Bollinger band at 1.2658, indicating a positive correction might be next. Overall, looking at the technical analysis landscape – although indicators are mixed and some are pointing in different directions, it seems further drawbacks may be next for the Canadian Dollar.
Positive performance can be seen looking at other symbols, as USD/ZAR is trading at 14.978 after gaining 1.81%.
At the same time, new 10 month high for oil at $50.05. The New year year high for the New-Zealand Dollar is at 0.7215. USD/SGD fell to 1.3189, hitting a 2 year low.
The market will be looking forward to the upcoming release of the following indicators: United States Crude Oil Inventories are projected to outperform the last figure at -1.50 million, while it previously stood at -6.07 million, data will be released today at 3:30 PM. United States ADP Nonfarm Employment Change (Dec) expected to decline to 88000, while its preceding data was 307000, data will be available today at 1:15 PM. United States FOMC Meeting Minutes will be released today at 7:00 PM. Today at 3:00 PM, data for United States Factory Orders will be released, with an expected decline to 0.7 from the preceding figure of 1.
Canadian Dollar social media highlights: