Currencies to watch

Aussie (December)

Session close: Lost about 40 ticks on the session to .7564

Fundamentals: Aussie GDP data missed expectations last night and took the wind from the currency’s sails; 2.8% YoY vs 3%. A strengthening dollar has added to pressures making it a difficult session on the heels of a wait and see approach from the RBA earlier in the week. Tonight will be key as it begins to round out a thick week of data and Trade Balance is due at 6:30 pm CT.

Technicals: Price action has bled clearly back below .7605-.7607 and faces major three-star support at .7530-.7550 which will be a critical battle for the rest of the week.

Bias: Neutral/Bullish

Resistance - .7605**, .7645-.7676***, .7726-.7755**, .7824**, .7891-.7893***
Support - .7530-.7550***, .7390****

Canadian (December)

Session close: Lost more than half a penny on the session to finish at about .7816

Fundamentals: The Bank of Canada left rates unchanged today which was not a surprise. The verbiage though essentially closed the door on a rate hike early next year. Labor Productivity missed the market this morning and this pushed the Canadian off of session highs ahead of the meeting. The announcement itself sparked a sizable drop and signals a failure against higher prices. Weakness in Crude Oil has also weighed on price action. Building Permits are due at 7:30 am CT tomorrow and Ivey PMI is at 9:00.

Technicals: Price action fell short of major three-star resistance early this week and on the heels of strong data last Friday. Due to this and the failure yesterday ahead of the Bank of Canada we were clear in the FX Rundown last night on our wait and see approach and Neutralized our stance on the Canadian. This is clear technical damage and the bears are now in the driver’s seat.

Bias:  Neutral/Bullish
Resistance – .7858*, .7897-7902*, 7922**, .7950-.7960***, .8019-.8035**, .8293****
Support - .7803**, .7730-.7745***, .7671**, 7550***

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