- Mixed PMI data from the U.S. don’t allow the buck to recover.
- US Dollar Index struggles to pull away from 95.
- Building permits in Canada decline for the second straight month.
After encountering a resistance near the 1.32 handle during the early European session, the USD/CAD pair retreated toward the 1.3170 mark but didn’t have a difficult time moving back into the positive territory. At the moment, the index is up 0.13% on the day at 1.3195.
Earlier today, the data released by the ADP showed that the employment in the private sector rose 163K to miss the experts’ estimate of 190K by a wide margin. Meanwhile, the IHS Markit’s final August Services PMI report revealed that the business activity in the service sector expanded at a slower pace than expected. However, the ISM’s non-manufacturing PMI improved to 58.5 from 55.7 to beat the market consensus of 56.8.
The mixed macroeconomic data releases from the U.S. didn’t allow the greenback to gather strength against its rivals and the US Dollar Index was last seen down 0.07% on the day at 95.04.
On the other hand, Statistics Canada reported that building permits fell 0.1% in July following June’s 1.3% declines to make it difficult for the loonie to take advantage of the broad-based USD weakness. In the meantime, crude oil prices, which came under a modest pressure yesterday on easing concerns over the possible supply disruptions due to tropical storm Gordon, stay relatively quiet on Thursday with the barrel of West Texas Intermediate staying virtually unchanged on the day near $68.60.
Technical levels to consider
The pair could face the first resistance at 1.3200/05 (psychological level/daily high/Sep. 4 high) ahead of 1.3290 (Jul. 19 high) and 1.3385 (Jun. 27 high). On the downside, supports are located at 1.3160 (daily low), 1.3080 (50-DMA) and 1.3000 (psychological level).
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