Asia Pacific Market Open – NAFTA Talks, USD/JPY, AUD/USD, USD/CAD
- Canadian Dollar appreciated aggressively on GDP data, convene in bonds Friday
- Asia Pacific trade wait weekend swell on NAFTA talks, confronting sensitivity next
- USD/CAD competence be resuming downtrend, though downside movement is declining
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The Canadian Dollar outperformed opposite a vital counterparts on Friday, primarily increased by better-than-expected GDP growth. Canada’s economy grew 2.4% y/y in Jul that was faster than a 2.2% boost expected. Local front-end supervision bond yields rallied as a news crossed a wires, signaling firming BoC rate travel bets.
Adding to gains in a Canadian Dollar after on was a pickup in marketplace mood on Wall Street notwithstanding European benchmark bonds indexes mostly streamer reduce amidst Italian bill woes. Stocks and sentiment-linked crude oil prices rallied as a third entertain came to an end. This weighed opposite a haven-linked US Dollar that finished a day carefully aloft still.
There competence nonetheless be room for some-more CAD gains as a new entertain begins. This is given after marketplace tighten Friday, Mexico’s Economy Minister ldefonso Guajardosaid that a US and Canada told them that they competence solve NAFTA issues over a subsequent 48 hours (weekend). If this is indeed a box by Monday Asia Pacific trade, afterwards we competence see USD/CAD opening lower.
This competence also offer gains to APAC equities if marketplace mood improves as a result, triggering a ‘risk on’ trade dynamic. Such an outcome would bode ill for a anti-risk Japanese Yen, serve pulling USD/JPY to a May/July/November 2017 highs. Meanwhile a pro-risk Australian and New Zealand Dollars could gain and trade higher. However, should a NAFTA talks breakdown, than this competence go a other way.
USD/CAD Technical Analysis
USD/CAD prices have tumbled 1.03% on Friday that was a many in a singular day given May 30th, roughly 4 months ago. While a span has managed to tighten during a lowest given May, a lows achieved in Aug were not damaged (1.28876). Simultaneously, positive RSI divergence warns that downside movement is fading. Confirmation of a annulment of USD/CAD’s widespread uptrend from Feb to Jun would need serve closes underneath support, exposing 1.2729 – 1.27662 next.
USD/CAD Daily Chart
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US Trading Session
Asia Pacific Trading Session
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— Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
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