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USD/CAD – Canadian dollar trading sideways as manufacturing sales within expectations

The Canadian dollar has steadied in the Thursday session, after considerable losses on Wednesday. Currently, USD/CAD is trading at 1.3143, up 0.02% on the day. On the release front, Canadian Manufacturing Sales softened to 1.1%, edging above the estimate of 1.0%. Canadian ADP Nonfarm Employment Change rebounded with a gain of 11.6 thousand. In the U.S, construction numbers were mixed. Building Permits improved to 1.31 million, matching the estimate. Housing starts remained at 1.17 million, short of the estimate of 1.27 million. The Philly Manufacturing Index dropped sharply to 11.9, missing the estimate of 21.9 points. Unemployment claims edged down to 212 thousand, shy of the estimate of 215 thousand. On Friday, Canada releases CPI and the U.S publishes Preliminary UoM Consumer Sentiment.

The Canadian dollar remains under pressure as the US currency continues to shine. On Wednesday, USD/CAD touched a high of 1.3175, its highest level since July 16. Strong U.S data continues to boost the greenback, and this was the case on Wednesday, as retail sales were unexpectedly strong. Core retail sales posted a gain of 0.5% for a second straight month, easily beating the forecast of 0.1%. If consumer confidence follows suit with a strong reading on Friday, it could be a sign of another strong quarter of economic growth.

Negotiations over NAFTA have progressed slowly, but policymakers in Canada and Mexico are hopeful that the flexibility that the U.S has shown towards the European Union will extend to NAFTA as well. Canadian and Mexican officials are hoping to reach an agreement, despite U.S President Trump’s stated preference for bilateral agreements. NAFTA is a key component of the Canadian economy and with 80% of the country’s exports headed the U.S., the lingering delays in reaching a new NAFTA accord have weighed on the Canadian dollar. If the parties are able to reach a new agreement, traders can expect the Canadian dollar to move higher.

USD/CAD Fundamentals

Thursday (August 16)

Friday (August 17)

*All release times are DST

*Key events are in bold

USD/CAD for Thursday, August 16, 2018

USD/CAD, August 16 at 9:35 DST

Open: 1.3141 High: 1.3159 Low: 1.3114 Close: 1.3143

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2831 12970 1.3067 1.3160 1.3292 1.3436

USD/CAD posted small losses in the Asian session but reversed directions and posted gains in European trade. The pair is steady in North American trade

Further levels in both directions:

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 [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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