USD/CAD: Canada’s manufacturing sector growth notched a 9-month high level in January


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.39% against the CAD and closed at 1.2266.

On the economic front, Canada’s RBC manufacturing PMI increased to a level of 55.9 in January, surging to its highest level since April 2017, highlighting that manufacturing sector would likely be one of the bright spots for the Canadian economy. The PMI had registered a reading of 54.7 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.2277, with the USD trading 0.09% higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.2245, and a fall through could take it to the next support level of 1.2212. The pair is expected to find its first resistance at 1.2321, and a rise through could take it to the next resistance level of 1.2364.

Next week, investors would closely monitor Canada’s unemployment rate, housing starts and building permits data.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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