USD/CAD firmer ahead of US ISM

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The Canadian dollar is trading on the back foot vs. its American neighbour today, with USD/CAD advancing to the 1.3910/15 band so far.

    USD/CAD focus on US data, oil

    The pair has managed to recover from the initial drop to the 1.3890 area following a better tone around the barrel of crude oil in response to the heightened concerns over the situation between Iran and Saudi Arabia.

    However, the subsequent recovery of the US dollar has prompted spot to retake the 1.3900 handle and advance to the vicinity of 1.3940, shedding some gains soon afterwards.

    Data wise in Canada, the manufacturing PMI tracked by RBC is due, while the ISM Manufacturing and Markit’s manufacturing PMI will see the light in the US calendar.

    USD/CAD key levels

    At the moment the pair is gaining 0.51% at 1.3908 facing the next hurdle at 1.4001 (high Dec.18) ahead of 1.4100 and 1.4200 (psychological levels). On the downside, a break below 1.3599 (2-month uptrend) would target 1.3474 (55-day sma) and then 1.3342 (100-day sma).
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