USD/CAD touches a high of 1.3063 on the session
The aussie and kiwi are both also down to session lows against the dollar but the notable mover has been the loonie. It's quite a move and this comes as the lira continues to fall against the dollar on the day. USD/TRY is now at 6.24.
There's headlines saying the US has filed a WTO appeal in dispute with Canada over paper duties but I'm not seeing much else. From a technical perspective, the break above the 100-hour MA (red line) @ 1.3040 seems to have drawn further buying. Apart from that, oil prices has been trading weaker but there is no big spike downwards that I can see in that to have caused the loonie to react in this manner.
Do note that liquidity remains thin in the market and I'm not seeing any key levels being broken in CAD/JPY (the other mover as well) apart from price breaking below an upwards sloping trendline in the near-term charts:
Looking at the spike, you'd think if was a NAFTA-related headline but that doesn't seem to be the case. As mentioned earlier, thin liquidity trading makes for exacerbated moves and we're still a couple hours away before US markets open so let's see how they will react to the weekend news on NAFTA here - which should be positive for the CAD.
