USD/CAD: Canada’s Ivey PMI dropped less than expected in February


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 2.91% against the CAD and closed at 1.3422 on Friday.

On the data front, Canada’s unemployment rate increased to 5.6% in February, in line with market expectations and compared to 5.5% in the previous month. Additionally, international merchandise trade deficit widened to C$1.47 billion in January, compared to a revised deficit of C$0.73 billion in the prior month. Meanwhile, the Ivey Purchasing Managers’ Index (PMI) dropped to a level of 54.1 in February, less than market forecast for a fall to 53.6 and compared to a rise of 57.3 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.3641, with the USD trading 1.63% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.3425, and a fall through could take it to the next support level of 1.3210. The pair is expected to find its first resistance at 1.3811, and a rise through could take it to the next resistance level of 1.3982.

Moving ahead, market participants would keep a close watch on Canada’s housing starts for February and building permits for January, slated to release later today.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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