USDCAD Retreats from 2-Month Highs as PMI’s Dissapoint
USDCAD trades 0.17% higher at 1.3341 having hit the daily high at 1.3382 making two month highs, but retreat fast after United States ISM Manufacturing PMI came in at 49.1 at three year lows, and below forecasts of 51 in August; ISM Prices Paid came in at 46 below forecasts of 46.3 in August. The Construction Spending (MoM) came in at 0.1% also below forecasts of 0.3% in July. In Canada the Markit Manufacturing PMI came in at 49.1 in August from 50.2 in July, registering three month lows. Crude oil prices slump 3.70% at 53.06 per barrel.
The positive momentum is stil intact for the USDCAD despite the recent correction as it is holding above the 200 day moving average. Immediate suppoer for the pair stands at 1.3318 today’s low and then at 1.3309 the 200 day moving average.
Sellers if they want to take control must break below 1.33 which will open the way for a visit down to yesterday’s low at 1.3245 the low from Friday. Immediate resistance for the pair stands at 1.3382 today’s high, then at 1.34 while more offers will be met at 1.3431 the high from June 18th. 1.33 is the critical point where bulls and bears are fighting, the sentiment is changing when the price breaks above or below.