USD/CAD dips lower on light data calendar

USD/CAD has started the week with slight losses. In Monday’s North American session, the pair is trading at 1.3260, down 0.122% on the day.

Investors eye BoC Business Outlook Survey

It’s a quiet start to the week on the fundamental front, which means that it could be an uneventful start to the week for USD/CAD. There are no tier-1 releases out of Canada or the US on Monday. In Canada, Wholesale Sales slowed to just 0.3%, down from 4.3% a month earlier. Still, this beat the estimate of 0.1%. The Bank of Canada released its Business Outlook report, which is released each quarter. The report found that businesses expect the pace of recovery of sales to slow. As well, the report stated that there are indications that “the pace of the recovery will slow and be uneven across industries.” This release is useful to gauge the mood of the business sector, and the findings reiterate that Canada’s economic recovery is tenuous, which could a bumpy road ahead for the Canadian dollar.

The critical manufacturing sector may also be slowing down. On Friday, Canada Manufacturing Sales came in at -2.0%, its first decline in four months. The Canadian dollar managed to shrug off the weak data, but if upcoming manufacturing releases also point lower, this will build pressure on the Canadian currency.

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USD/CAD Technical

  • USD/CAD is testing support at 1.3169. Below, there is support at 1.3142
  • There is resistance at 1.3230. This is followed by resistance at 1.3264
  • The 10-day MA line is currently just above the pair

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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.