USD/CAD steady as Canada Manufacturing PMI Rises

The week started slowly for USD/CAD, as Canadian banks were closed for a holiday. Tuesday has started in the same fashion, with limited movement from USD/CAD.

 

Canada Manufacturing PMI shows expansion

Canada’s manufacturing sector has been hit hard by the Covid-19 pandemic, as the lockdown has resulted in decreased factory production. Manufacturing PMI hasn’t recorded a reading in expansion territory since April, but the rate contraction has slowed. The June release improved to 47.8, up from 40.6. The upswing continued in July, as the PMI rose to 52.9. The 50-mark separates contraction from expansion.

 

US dollar improves on ISM Manufacturing PMI

The US dollar received a much-needed boost against the majors after a strong showing from ISM Manufacturing PMI on Monday. The PMI accelerated for a third successive month, rising from 52.6 to 54.2. This marked the PMI’s strongest read since March 2019. As well, the Markit Manufacturing PMI climbed to 50.9 in July, its first read in expansion territory since February.

 

USD/CAD Technical

 

USD/CAD is currently trading at 1.3416, up 0.17% on the day. The pair lost ground in the Asian session but reversed directions and posted considerable gains in European trade

  • 1.3447 is under pressure resistance. Above, we find resistance at 1.3478
  • 1.3379 is providing support, followed by support at 1.3342
  • USD/CAD is trading just below the 10-day MA. If the pair breaks above this line, it is a bullish sign for the pair

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.
Kenny Fisher

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