Forex Analysis : USD/CAD … Feeling the pain like ASEAN currencies
Although not a foregone conclusion, there is some chance of a mild rebound in the USD against the Canadian Dollar. A swift move above 0.9667 is needed to give weight to a bounce
• The Loonie’s strength is beginning to hurt Canadian exports – hardly a surprise – and something felt by most of Asia and Latin America, but it remains to be seen if a reversal will be able to take hold just yet.
• We view 0.9667 as first barrier of significance, and if it is broken, then a move to nearer 0.9850 or so could well ensue.
• A failure to pass 0.9667 will open the door for a retest of the recent low at 0.9525, and given the forex markets take no prisoners, possibly even stronger.