Even though the Canadian dollar has been range trading over the past week, it has been extremely volatile on an intraday basis. We have seen swings of 50 to 70 pips within minutes at all hours of the day. We finally have seen the breakout that we are waiting for with USDCAD taking a stab at parity.
It has not been able to hold onto those gains but we think that there could be another push higher before USDCAD meets it stiff resistance around 1.0125. With no Canadian data until Thursday, the currency is trading on the back of oil, which is off its highs. The Australian and New Zealand dollars on the other hand are stronger thanks to a 200-point rebound in the Dow.