USDCAD seesaws as traders assessing a plethora of economic data from both countries. The University of Michigan’s (UoM) Consumers Survey showed that the Index of Consumer Sentiment dropped to 72.5 in July below the expectations of 73, and below the 78.1 reading in June. The ISM Chicago’s Purchasing Managers’ Index (PMI) improved jumped to 51.9 in July from 36.6 in June. The figure beat the market estimates of 43.9.
The Canada Gross Domestic Product (GDP) registered in at 4.5%, topping the estimates of 3.5% in May. The Industrial Product Price in Canada came at 0.4%, below the forecasts of 0.5% in June, while the Raw Material Price Index came in at 7.5%, topping the expectations of 6.9%. The Building Permits in the country dropped to 6.2% in June from 20.2% in May. Overall, Canada’s economy shows some clear signs of recovery in the last weeks, outperforming the U.S. economy.
The Canadian dollar has lost the support from higher crude oil prices the last two trading days as the dismal GDP figures from the USA and Europe increase investors worries that the economic recovery and higher crude oil demand might be halted amid the rising number of new coronavirus cases.
The USDCAD is 0.02% higher at 1.3421 as the rebound from six-week lows continues, but USD still looks vulnerable below 1.35. Bulls would seek a break above yesterday’s high at 1.3455. That would open the way for the next hurdle at 1.3522 the 200-day moving average. Next supply zone would be met at 1.3552 the 50-day moving average.
On the downside, intraday support stands at 1.3404 today’s low. Further down the next area to watch is 1.3327 the low from yesterday’s trading session. The June lows at 1.3315 would provide the next support zone.
