- Canada posts monthly trade surplus in May for the second time in nearly 3 years.
- US Dollar Index ignores soft ADP employment data, stays flat near 96.70.
- Coming up: ISM Non-Manufacturing PMI and Markit Services PMI from the US.
The USD/CAD pair came under a renewed selling pressure in the early American trading hours and dropped below the 1.3070 mark to come within a touching distance of the 2019 low that the pair set last week at 1.3057. As of writing, the pair was down 0.27% on the day at 1.3065.
The data published by Statistics Canada today showed that the country recorded a trade surplus of $0.76 billion in May to better the market expectation for a deficit of $1.5 billion.
On the other hand, the ADP in its monthly publication revealed that the private sector employment grew by 102,000 in June to fall short of the analysts’ estimate of 140,000. Other data from the U.S. showed that initial jobless claims edged down to 221,000 in the week ending June 28 and the trade deficit widened to $55.5 billion in May from $52.1 billion in April. Following the mixed data, the US Dollar Index struggled to make a decisive move in either direction and was last seen posting small daily losses at 96.70.
Later in the session, the IHS Markit and the ISM both will be publishing their PMI reports for the service sector.
Meanwhile, the Energy Information Administration is also scheduled to release its weekly crude oil inventory report. Ahead of that data, the barrel of West Texas Intermediate is trading near $57, rising more than 1% on the day and helping the commodity-sensitive loonie preserve its strength.
Technical levels to watch for
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