USD/CAD steadied on the 100 our SMA

• USD/CAD stablising a busy session in NY on the 100 our SMA

Currently, USD/CAD is trading at 1.2865, down -0.19% on the day, having posted a daily high at 1.2912 and low at 1.2853.USD/CAD has bottomed today in the Asian handover, with bulls tallying up 30 pips on the bid despite that Poloz reiterates in his second day of testimony that the BoC needs to be 'cautious' on next rate hike.

More on Poloz testimony

In terms of wages, Poloz said that we are likely to see minimum wage increases having a modest impact on wage growth. However, he is more concerned about inflation underperforming the 2% target if labour dynamics operate as they often have in this cycle. 

Meanwhile, the dollar has drawn most of the attention in today's markets. The DXY was volatile while leading into the main event, that actually turned out to be a 'non-event'in terms of big pip movements, with the FOMC, as widely expected, not changing its stance and repeating much of what we already knew with respect to their outlook and analyses of the US economy. After the event, the markets remained jittery for some time and USD/CAD was no exception, grinding in a chop from 1.2889 down to 1.2854. 

USD/CAD levels

Tuesday’s modest rally to 1.2914 failed to reach Friday’s high around 1.2920 and a double top would imply a decline toward 1.2700, noted analysts at Scotiabank. "Bullish daily momentum signals are exhausted and DMI’s have stabilized. We highlight the importance of potential resistance around the midpoint of the May September decline at 1.2928. Near-term support is expected at 1.2780."