The USDCAD is trading up and down in volatile non-trend line trading today. The pair has tried on a number of occcasions to extend above the 50% midpoint of the move down from December high at 1.27054. The high has reached 1.27264. The low - reached in the NA morning session - extended to 1.26496. The current price is back near the 50% midpoint level.
The Bank of Canada kept rates unchanged at their meeting yesterday when expectations were about 70-30 for a hike of 25 basis points. The BOC Macklem said that they wanted to be deliberate and clear rather than hiking now. He added:
- Hikes won't be automatic, will take decisions at each meeting
- As we get further down the path of rate hikes, the decisions will get more data dependent
Although there is expectations they will act in March, the lack of action helped to weaken the loonie (higher USDCAD) and push the price back above the 100 day MA at 1.26192. That MA along with the rising 100 hour MA at 1.2626 would be a barometer on the downside for buyers and sellers. Stay above, and give the short term bias to the buyers. Move below, and the buyers turn to sellers again.
