USD/CAD extends losses to 1.3130 area on upbeat Canada data


  • Manufacturing sales in Canada rose more than expected in August.
  • Industrial production in the United States (US) contracted in September.
  • Crude oil lost momentum after the EIA data showed large increase in crude oil stocks. 

After spending the majority of the day moving sideways near the 1.32 handle, the USD/CAD pair turned south during the American trading hours and fell to its lowest level since late July at 1.3131. As of writing, the pair was trading at 1.3135, losing 0.5% on a daily basis.

Earlier in the day, Statistics Canada reported that manufacturing sales in Canada rose 0.8% in August following July's contraction of 1.3% and surpassed the market expectation of 0.6%. On the other hand, the ADP's Employment Change came in at 28,200 in Canada to miss analysts' estimate of 56,500. However, ADP's August reading got revised up to 109,900 from 49,300 to help the Loonie preserve its strength.

In the meantime, the weekly report published by the Energy Information Administration (EIA) showed that crude oil stocks in the US increased by 9.3 million barrels and caused crude oil to start erasing a portion of daily gains to keep the pair's losses limited for the time being.

US Dollar Index pushes lower on dismal data

Meanwhile, the Federal Reserve's monthly publication revealed that industrial production and manufacturing production contracted by 0.4% and 0.5%, respectively, to remind investors of the manufacturing sector's weakness. The US Dollar Index extended its slide on the disappointing data and was last down 0.37% on the day at 97.65.

Commenting on the US data, "Looking ahead the outlook for manufacturing remains poor. Global economic weakness is hurting business sentiment and is resulting in weaker export growth," ING analysts said. "The strength of the dollar is compounding the problem and then when we add in the lingering negatives from the US-China trade war there is seemingly little to be optimistic about right now."

Technical levels to consider

USD/CAD

Overview
Today last price 1.3136
Today Daily Change -0.0062
Today Daily Change % -0.47
Today daily open 1.3198
 
Trends
Daily SMA20 1.3266
Daily SMA50 1.3264
Daily SMA100 1.3234
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3238
Previous Daily Low 1.3184
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3204
Daily Fibonacci 61.8% 1.3217
Daily Pivot Point S1 1.3176
Daily Pivot Point S2 1.3153
Daily Pivot Point S3 1.3122
Daily Pivot Point R1 1.323
Daily Pivot Point R2 1.3261
Daily Pivot Point R3 1.3283

 

 

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