Crude Oil, which is Canada's largest export, remained above 100 USD per barrel in the past three weeks. As a result the CAD climbed versus the majority of its most traded peers. Investors estimated that tomorrow a report will show that the economy in Canada rose 0.3 percent in May from 0.1 percent the month before. Last week a report revealed that retail sales in May climbed at the fastest pace in three years. The USD/CAD was at 1.0265 and the CAD/JPY traded at 95.34.
The market forecasted that tomorrow data will show the U.S. economy expanded at a slower pace while the Federal Open Market Committee starts its two-day policy meeting. Yesterday data showed that an index U.S. pending home sales fell 0.4 percent in June from the previous month. Today economists expect that the Conference Board will say its gauge of consumer confidence dropped in July to 81.3 from 81.4 in June. Tomorrow the European Central Bank is going to set policy meeting. Furthermore the demand for haven assets increased after equities around the world declined and growth in China is losing momentum. Investors assume that China may miss the nationwide 7.5 percent expansion goal as official concern over localgovernment financing threatens to curb funding for investment. As a result Japan's currency was able to held gains and traded 0.3 percent from a month high against the USD. The USD/JPY was at 97.92 and the EUR/JPY touched 129.87. The EUR/USD was nearly unchanged at 1.3263. The Dow Jones Index of shares dropped yesterday 0.2 percent and the Standard & Poor's Index also tumbled 0.4 percent. The MSCI World Index of stocks declined 0.5 percent yesterday.
Technical analysis
XAU/USD (Daily)
Recently the XAU/USD was able to cross the long term downward trend line but it rebounded at the resistance level around 1349. So it remains to be seen if it can fulfill a real trend reversal and cross the next line or to drop back below the bearish trend and continue to decrease. The climbing MACD supports the bulls.
AUD/USD (4 Hours)
For the past six weeks the currency pair is trading in a sideways movement between the support level around 0.8991 and the resistance level around 0.9324 (Fibonacci level 50.0). Based on the commodity channel index the pair might be able to strengthen again so the sideways trend might continue.
USD/CAD (4 Hours)
As you can see the bears pull the pair down after they have taken control of it at the beginning of this month. Recently it has touched the bearish trend line and according to the Demarker the bulls might have taken control of the pair at the support level around 1.0246 (23.6), so a trend reversal might be expected
IMOH, Clement I.
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