USD/CAD finds support around 1.0220

FXstreet.com (Barcelona) - The Canadian dollar is appreciating for the third consecutive session against the greenback on Friday, hovering over 1.0230 after printing intraday lows in the vicinity of 1.0220

The research team at TD Securities commented, “We think the 1.0181 low earlier in the week… represents an important short-term - at least - low for USD/CAD. The potential for a break out above 1.0276 remains but the break out will have to come sooner rather than later if the formation is to have any influence on the market at all”.

At the moment, USD/CAD is losing 0.22% at 1.0226 with the next support aligning at 1.0200 (Lower Bollinger) ahead of 1.0181 (low Mar.15) and then 10160 (low Feb.22).
On the flip side, a climb beyond 1.0315 (high Mar.8) would expose 1.0320 (Upper Bollinger) and then 1.0329 (high Mar.7).

Mar 22, 2013

Forex Flash: Deficits have eased in recent years via austerity – Goldman Sachs

As much of the Euro area and the UK has seen weak growth in 2012, the pace and extent of fiscal consolidation have come into question. According to the Economics Research Team at Goldman Sachs, “With the fiscally weakest Euro area members covered by Troika support programs, the focus has shifted to securing government solvency in France, Italy and Spain. In these countries, further deficit reductions are required to ensure that debt-to-GDP ratios decline in the medium term. This challenge is not unique to the Euro area: fiscal balances also need to be improved over the medium term in the UK.”

Forex: AUD/USD tests 1.0450

The Aussie is trading higher today and after a period of consolidation above the 1.0400, the AUD/USD has advanced around 30 pips in the last couple of hours to test the 1.0450. Currently the pair is trading at 1.0440.