Forex Investment and Currency Trading

Yesterday’s squeeze up in equities and boost to risk sentiment has faded after no news on additional stimulus measures emerged from the China overnight. The National People’s Congress lasts nine days so there is still time perhaps for Premier Wen to firm up the commitment he did give in his comments to significantly boost capital spending. Still, for today, the market has already spent a good part of the session back and filling the USD sell off seen overall yesterday. The major commodity currencies had a good day yesterday, with the CAD, AUD and NZD all putting in strong technical performances
so the issue going forward is whether that was a flash in the pan or the sign of something more durable. USD/CAD’s turn lower from the 1.30 area again over the past few days has the hallmarks of an important top/reversal on the charts and should strengthen the level of resistance in the high 1.29s/low 1.30s from here. Intraday resistance should be firm in the 1.2870/90 region. US data will be the main focus this morning (weekly claims, factory orders and mortgage delinquencies) but the Ivey
PMI data for Canada will also attract some attention.