- Summary:
- USDCAD is under selling pressure for one more day hitting the lowest level since March 11. Dismal economic data from USA and the strong rebound in crude oil
USDCAD is under selling pressure for one more day, hitting the lowest level since March 11. Dismal economic data from the USA and the strong rebound in crude oil price supports the Canadian Loonie.
The United States ISM Manufacturing PMI came in at 43.1, below the consensus of 43.6 in May. From the details, the ISM Manufacturing Prices Paid registered in at 40.8, topping the forecasts of 36. The ISM Manufacturing Employment Index registered in at 32.1 below the expectations of 35, while the ISM Manufacturing New Orders Index came in at 31.8, also below the forecasts of 40.3 in May.
Positive news came from the housing sector as the United States Construction Spending in April came in at -2.9% above expectations of -6.5%.
Earlier today reported that the United States Manufacturing PMI came in at 39.8 in line with forecasts recovering from record lows at 36.1 in April. Looking at the details, the Output Index increased to 24.4 from 28.8 while the New Orders Index rose to 34.6 from 27.7.
From Canada, the manufacturing continues to contract but shows some signs of recovery. The Manufacturing PMI reported at 40.6 in May from 33 in April.
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USDCAD Price Analysis
The USDCAD is 0.84% lower at 1.3651 at daily lows and making fresh 11-week lows, as the selling pressure accelerated after the manufacturing data from the USA. The pair today breached below the critical 100-day moving average, and more sellers might step in to join the action.
On the downside, first support for USDCAD stands at 1.3642 the daily low. If the pair breaks below 1.3642, the next critical support will be met at 1.3513 the low from March 9. The next support area is at 1.3460 the 200-day moving average.
On the contrary, the immediate resistance for USDCAD stands at 1.3800 the daily high. If the USDCAD pair moves higher, the next hurdle will be met at 1.3837 the high from Friday’s trading session. In case the bullish momentum persists, the next resistance stands at 1.3979 the high from May 26.