Holds range set in upper 1.35s – Scotiabank

The Canadian dollar (CAD) is trading just below the 1.36 level as traders await the Fed, notes Shaun Osborne, chief FX strategist at Scotiabank.

CAD is little changed ahead of the FOMC

“BoC meeting minutes may not provide more insight into the policy outlook than we already know. Inflation is slowing in line with BoC forecasts, and while Q3 growth is likely to be well below the Bank’s lofty expectations, the rationale for more aggressive policy moves is unclear to me at this point.”

“There is no change in USD/CAD technical condition. Spot continues to pivot around the 200-day MA (1.3587), with the USD finding it impossible to translate the positive momentum on the intraday and daily charts into more obvious advances.”

“Short-term technical resistance remains at 1.3635 (38.2% retracement of August USD decline) and 1.3695 (50% Fibonacci). Support is 1.3550 (minor, last Monday’s low) and 1.3465.”