USDCAD trades 0.22% higher at 1.3266 despite worse than expected ISM Manufacturing PMI; the figure came in at 47.8 below expectations of 50.10. USDCAD boosted earlier by worse than expected GDP data; the Canada Gross Domestic Product (month over month) came in at 0% below expectations of 0.1% in July. USDCAD on the news gave up 20 pips but still holds the daily gains.
Crude oil Canada main export commodity trading 1.15% higher at 54.69 just to offset the negative impact of the GDP disappointment.
USDCAD momentum is bullish as the pair breaks above the 100 and 50-day moving averages. On the upside, where traders had shifted their attention now immediate resistance stands at 1.3289 the daily high, then at 1.3296 the 200-day moving average, while more offers will emerge at 1.3344 the high from September 4th. On the downside, the pair formed a strong support zone at 1.3134 which tested successfully for three days in a row in early September. First support for the pair stands at 1.3245 the 50-day moving average while more bids will emerge at 1.3232 daily low; a break below may encourage more bears to join the action, something that is possible to lead USDCAD towards the next resistance territory, 1.3213 the low from September 27th.