USD/CAD – Canadian Dollar Steady Despite Feeble Manufacturing Sales

The Canadian dollar has posted slight gains on Tuesday, changing directions after sustaining sharp losses a day earlier. In the North American session, USD/CAD is trading slightly above the 1.16 line. In the US, Housing Starts and Building Permits missed their estimates. North of the border, Canadian Manufacturing Sales declined by 0.6%, while Foreign Securities Purchases was up sharply, climbing to C$9.53 billion.

In the US, Tuesday’s data was a disappointment. Building Permits dropped to 1.04 million, short of the estimate of 1.06 million. Housing Starts rose slightly to 1.04 million, shy of the estimate of 1.06 million. The Manufacturing PMI dipped to 53.7 points, well off the forecast of 56.1 points. This was the indicator’s worst showing since January.

Canadian Manufacturing Sales, a key indicator, looked weak in November, posting a decline of -0.6%, compared to a strong gain of 2.1% a month earlier. This missed the estimate of -0.4%. Meanwhile, Foreign Securities Purchases jumped to C$9.53 billion, easily beating the estimate of C$5.21 billion. Despite the disappointing Manufacturing Sales report, the Canadian dollar managed to post gains on Tuesday, after tumbling about 100 points a day earlier.

USD/CAD for Tuesday, December 16, 2014

USD/CAD December 16 at 16:20 GMT

USD/CAD 1.1631 H: 1.1665 L: 1.1610

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.1278 1.1414 1.1493 1.1669 1.1723 1.1875

 

  • USD/CAD has shown little movement on Tuesday. The pair touched a low of 1.1608 earlier in the North American session.
  • 1.1493 is providing strong support.
  • On the upside, 1.1669 remains a weak resistance line. 1.1723 is stronger.
  • Current range: 1.1493 to 1.1669

Further levels in both directions:

  • Below: 1.1493, 1.1414, 1.1278, 1.1124 and 1.1004
  • Above: 1.1669, 1.1723, 1.1875 and 1.1975

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions on Tuesday. This is consistent with the movement of the pair, as the Canadian dollar has posted slight gains. The ratio has a majority of short positions, indicative of trader bias towards USD/CAD continuing to head lower.

USD/CAD Fundamentals

  • 13:30 Canadian Manufacturing Sales. Estimate -0.4%. Actual -0.6%.
  • 13:30 Canadian Foreign Securities Purchases. Estimate 9.53B. Actual 5.21B.
  • 14:15 US Housing Starts. Estimate 1.04M. Actual 1.03M.
  • 14:45 US Flash Manufacturing PMI. Estimate 56.1 points. Actual 53.7 points.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.