The first Presidential Debate has taken most of the headlines today and consequently wounded global stock markets in particular the S&P, Dax, and FTSE. Impact is a pull back for the Aussie across multiple markets, and an opening 0.5% down vs JPY as Asian investors look to assess risk across Asia. The main target 75.94 as a support that’s held since September 12th on four previous occasions. A positive Clinton performance would end negative bias with a close above 77.03.
USD/CAD is approaching some interesting levels ahead of the Bank of Canada governor Stephen Poloz speech today. The change in market tone comes after weak retail sales and CPI. Resistance at 1.3230 has held on three occasions whilst shorts on range will look to target support at 1.21325.
USD/JPY is currently on the backfoot as it looks to test 100.00. Last Thursday we saw a spike low of 100.10 and a break of 100 would target 99.55 in search of post brexit lows of 99.00. This is in the lead up to Fed Vice Chair Fischer speaking on Tuesday and Chair Janet Yellen addressing Congress on Wednesday in which we expect them to emphasize their hawkish position of a rate hike before the end of the year.