The USD/CAD bounced back after falling to a fresh yearly low of 1.0529 during the overnight session, and remains lower on the day after moving nearly 65% of its daily ATR. The Canadian dollar appreciated for the fourth day and is the best performing currency against the greenback as the loonie continuing to benefit from higher oil prices, and the rise in risk appetite may drive the exchange rate lower throughout the U.S. trade as traders move into higher-yielding currencies. As a result, the commodity currency may extend its rally throughout the week however as economists project employment to rise for the second consecutive month in September however, housing starts are forecasted to fall to 148.0K from a revised reading of 150.5K in August, and the data may drag on the exchange as investors weigh the prospects for a sustainable recovery in Canada. Nevertheless, as the 30-minute RSI bounce back from oversold territory, we may see the dollar-loonie push higher throughout the North American session and fill-in the gap from the 100-SMA at 1.0639.
The USD/CHF halted the three-day decline and retraced the downturn on Tuesday to cross back above the 20-Day SMA (1.0325) however, the advance looks to have stalled at a high of 1.0345 as the 30-minute RSI falls back from overbought territory. As a result, we may see the dollar-franc hold along the 200-SMA throughout the North American trade as the greenback strengthens across the board, and is likely to remain range-bound over the week as investors weigh the outlook for future policy.
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