- The US favor to Canadian structural steel pleases USD/CAD buyers ahead of second-tier housing data at home.
- Developments surrounding the US-China trade tension and comments from the Fed policymakers will also be in the spotlight.
With the US Commerce Department’s favor towards Canada pleasing the USD/CAD buyers, the Loonie takes the bids to 1.3105 during early Tuesday.
As per the Reuters, the US Commerce Department will direct Customs and Border Protection to collect cash deposits from importers of structural steel imports from China and Mexico while leaving Canada untouched.
Canada has been on the US list of favorite friends ever since the nation openly retaliated against China and announced help to the former as far as the rare earth metals are concerned.
While optimism surrounding the US-Canada relationship is playing well in favor of the Loonie, doubts surrounding the trade truce between the US and China is weighing overall commodity basket and the Canadian Dollar (CAD) as well.
Moving on, Canada’s June month seasonally adjusted Housing Starts (YoY) and May month’s Building Permits (MoM) will be up for release during the later day. After that, speeches from the US Federal Reserve Chairman Jerome Powell, Federal Reserve Bank of St. Louis President James Bullard and the Federal Reserve Bank of Atlanta Chief Raphael Bostic will be on the spotlight.
Housing Starts are expected to increase to 209K from 202.3 prior whereas Building Permits might shrink to -2.5% versus +14.7% previous growth. Further, investors will seek bullish clues from the Fed policymakers’ speech to carry their latest US Dollar (USD) positive momentum.
Technical Analysis
1.3145/50 acts as an immediate upside barrier for the quote while the 21-day simple moving average (SMA) near 1.3200 and June month low around 1.3280 will be on the bull’s radar then after.
Alternatively, 1.3040, 1.3000 and 1.2970 can entertain sellers during the pullback.
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