Canadian Dollar Struggles To Hold Onto Recent Gains As U.S. Dollar Rebounds -

Canadian Dollar Struggles To Hold Onto Recent Gains As U.S. Dollar Rebounds

Dec 04, 2023Jeremy ParkinsonFinance, No picture0

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The Canadian Dollar (CAD) pared back some of last week’s gains as the US Dollar (USD) sees a broad-market recovery on the back of renewed risk aversion. The Canadian Dollar is down roughly a third of a percent against the Greenback on Monday.Canada is absent from the economic calendar for the early half of the week, with the latest rate call from the Bank of Canada (BoC) due on Wednesday. The BoC is expected to hold rates steady at 5% for the fourth meeting in a row.

Daily Digest Market Movers: Risk aversion is back on the menu as investor appetite sours, Canadian Dollar softens as US Dollar recovers

The Canadian Dollar has given back four-tenths of a percent against the US Dollar in Monday trading.

The CAD has performed strongest against the Antipodeans to kick off the trading week, up nearly six-tenths of a percent and a third of a percent against the Aussie (AUD) and the Kiwi (NZD), respectively.

The BoC’s upcoming rate call should represent an entire quarter of no rate hikes, as long as policymakers meet markets in the middle.

The BoC raised eyebrows when they gave interest rates an additional 25-basis-point bump back in July.

Monday’s markets are chewing on a miss in US Factory Orders, which also saw a downside revision to previous figures.

US Factory Orders declined 3.6% in October, falling even further below the median market forecast of a 2.6% contraction.

September’s US Factory Orders were revised from 2.6% to 2.3%.

Tuesday will bring more of the same CAD-light data docket, with the US ISM Services Purchasing Managers Index (PMI) being the key data focus.

Canadian Dollar price today
The table below shows the percentage change of the Canadian Dollar (CAD) against listed major currencies today. The Canadian Dollar was the weakest against the US Dollar.

USD EUR GBP CAD AUD JPY NZD CHF USD 0.63% 0.76% 0.38% 0.95% 0.42% 0.76% 0.64% EUR -0.65% 0.14% -0.20% 0.33% -0.22% 0.15% 0.00% GBP -0.79% -0.13% -0.38% 0.19% -0.33% 0.00% -0.13% CAD -0.41% 0.22% 0.36% 0.58% -0.01% 0.36% 0.23% AUD -0.96% -0.33% -0.19% -0.58% -0.55% -0.18% -0.33% JPY -0.48% 0.21% 0.49% -0.04% 0.54% 0.34% 0.20% NZD -0.76% -0.13% 0.00% -0.38% 0.19% -0.34% -0.14% CHF -0.66% -0.01% 0.12% -0.26% 0.31% -0.22% 0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Technical Analysis: Canadian Dollar attempts to arrest further declines after Greenback bidders draw a line in the USD/CAD at 1.3500
The Canadian Dollar (CAD) fell back against the US Dollar (USD) in a broad-market risk rebound that sent the USD/CAD higher after rebounding from the 1.3500 handle.Near-term bullish momentum remains limited with the USD/CAD getting snagged on the 50-hour Simple Moving Average (SMA), and Monday’s current high bid sits at 1.3560. Intraday action sees a technical ceiling at the 200-hour SMA near 1.3610, and the figure for Canadian Dollar bidders to beat will be Monday’s bottom bids at 1.3480.Monday’s pullback brings omens of US Dollar (USD) strength on the daily candlesticks, with the 200-day SMA acting as technical support just above the 1.3500 handle.Adding to the US Dollar rebound picture, technical indicators are leaning firmly into exhaustion territory, with the 14-day Relative Strength Index (RSI) tapping the lower bound, indicating oversold conditions.On the other hand, a bullish continuation of the Canadian Dollar’s recent strength will see a fresh run at September’s low bids near 1.3380.

USD/CAD Hourly Chart

USD/CAD Daily Chart
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