USDCAD recovers all of yesterday’s losses after Manufacturing production in Canada fell at the fastest pace for the last nine-and-a-half years in March. The Canada Markit Manufacturing PMI came in at 46.1 a big miss of the expectations at 53.3 in March. Shrinking demand amid the coronavirus crisis drove to record declines in output, new orders and employment.
In the United States economic data, the ADP Employment Change came in at -27,000 topping the expectations of -150,000 in March. The figure came after last Thursday the Labor Department, announced a disastrous Initial Jobless Claims figure for March 20 week which skyrocketed to 3,283,000 from 282,000 the previous week.
The collapse in oil prices from the February highs against the dollar exceeded over 11% of loses. The price of crude oil dropped over 75% in the first quarter. The Bank of Canada slashed interest rates by 50 basis points that brought the overnight target to 0.25% and started an asset purchase program that includes government bonds and commercial paper.
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USDCAD Technical Analysis
The USDCAD is 0.70% higher at 1.4158 in a high volatility session, with over 200 pips move intraday. Currently, the pair trading in the middle of the daily range as the consolidation after the correction from recent highs continues for the third day in a row. The technical picture is bullish, and after the short pullback, the US dollar might attempt a move up to 1.44 mark.
On the upside, the first resistance for USDCAD pair stands at 1.4271 the daily top. If USDCAD breaks higher, the next resistance level will be met at 1.4351 the high from yesterday’s trading session. In case of a breakout higher, the next hurdle stands at 1.4482 the high from March 25.
On the other side, the immediate support for the pair stands at 1.4058 the daily low. If USDCAD breaks below, the next support will be met at 1.4015 the low from yesterday’s trading session. Next support zone is at 1.3920 the high from March 27.
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