USD/CAD flat despite strong Canadian data

The Canadian dollar’s mini-rally has taken a pause on Thursday. In the North American session, the pair is trading at 1.3306, down 0.11% on the day. After a quiet start to the week, USD/CAD dropped by o.50% on Wednesday, its sharpest one-day fall since early September.

Canada Manufacturing PMI accelerates

Canada’s manufacturing sector continues to recover after a difficult second quarter. The Manufacturing PMI accelerated for a fifth successive month in September, with a reading of 56.0 points, well into expansionary territory. The PMI has steadily rebounded since a poor reading of 33.0 in May, which indicated a sharp contraction. A strong manufacturing sector is critical in order for the economic recovery to gain traction. There was more positive economic data on Thursday, as Building Permits rebounded in August with a gain of 1.7%. This follows a reading of -3.0% in the previous reading.

Canada’s economy grows for a third consecutive month in July, with a gain of 3.0%. This figure was just above the forecast of 3.0%, and the positive reading propelled the Canadian dollar higher on Wednesday.


USD/CAD Technical


  • 1.3391 is the next resistance line. This is followed by resistance at 1.3464
  • 1.3272 is a weak support level. Below, there is support at 1.3228
  • USD/CAD broke below the 10-day MA line on Wednesday, which indicates a downward trend for the pair

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
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, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.