USD/CAD To Trade With Risks Skewed Lower

USD/CAD to trade with risks skewed lower. Pair undermined by increased investor risk appetite, stronger commodity & oil prices (Nymex crude settled up $1.11 yesterday at $75.02/bbl). But USD/CAD losses tempered by caution before U.S. August employment data, positions adjustment before weekend, reduced expectations of BOC rate hike at Wednesday''''s meeting. 'With a slowing U.S. economic growth trajectory and early evidence that the Canadian economic backdrop is not as strong as the BOC had expected, the risk that the BOC pauses has increased,' says Scotia Capital. Data focus: 1215 GMT Canada August official international reserves. USD/CAD daily chart mixed as MACD bullish, but stochastics bearish at overbought; bearish parabolic stop-and-reverse signal hit at 1.0481 yesterday. Support at 1.0468 (yesterday''''s low, matching Monday''''s low), then at 1.0441 (Aug. 23 low); breach would expose downside to 1.0378 (Aug. 20 low), then 1.0241 (Aug. 19 reaction low) and 1.0102 (Aug. 5 reaction low). Resistance at 1.0556 (yesterday''''s high); breach would expose upside to 1.0656 (Wednesday''''s high), then 1.0677 (July 6 reaction high), 1.0851 (May 25 reaction high) and 1.0869 (Nov. 2 reaction high).