USDCAD has bounced off of the multi-month lows on the stronger-than-expected US Marking Manufacturing PMI, which came at 51.5, compared to 51.1 for the previous month of September, and 50.7 expected by the market.
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The US dollar has received a boost after the better than expected Markit PMI data. Although the Markit PMI Composite came lower than expected (51.2 vs 51.6), all three PMI components registered higher readings than in the previous month of September. In the manufacturing report, especially positive is the data related to new orders: 52.5 vs 51.5 prior.
USDCAD is now 30 pips from the daily low of $1.3053, which is also the new 3-month low for the pair. The Fibonacci 127.2% extension sits at $1.3077 and a close above this level will likely mean a failed attempt to break this support zone.
On the upside, the bulls will want to push the price higher and re-test the broken horizontal support around the $1.3130 handle.