FXStreet (Edinburgh) – Canadian Manufacturing Sales are due later across the pond, with market consensus expecting sales to have expanded at a monthly pace of 0.1% and thus reverting August’s 0.2% contraction.
Manufacturing Sales have shown an erratic performance in the recent periods, with the Canadian dollar paying more attention to the ongoings of crude oil prices and the BoC monetary stance, remaining vigilant at the same time on the potential rate hike by the Federal Reserve in the short-term.
“We think USDCAD is setting up for a challenge of the multi-year high of 1.3457 as a full suite of data is set for Canada this week, much of which we think will print on the soft side”, suggested strategists at TD Securities. In terms of resistance, there is not much to say between current levels and 2015 tops in the mid-1.3400s; while on the opposite side the initial support aligns at 1.3217 – the 38.2% Fibo retracement of the 1.3458-1.2827 move – ahead of the 55-day sma located today around 1.3180/85.
(Market News Provided by FXstreet)