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  • Markit Manufacturing PMI in Canada drops to 3-month lows in August.
  • New orders declined at fastest pace since early 2016.
  • USD/CAD continues to trade near multi-month hgihs around 1.3370.

The data published by the IHS Markit today showed that the business activity in the Canadian manufacturing sector contracted with the headline PMI arriving in at 49.1, compared to 50.2 in July. Although the market reaction to the data was relatively muted, the USD/CAD pair continues to trade at its highest level since mid-June. As of writing, the pair was up 0.33% on the day at 1.3370.

Commenting on the data, “Canadian manufacturers reported a setback for business conditions in August, following the slight improvement seen during the previous month,” said  Tim Moore, Economics Associate Director at IHS Markit.

“New orders declined at the fastest pace for more than three-and-a-half years amid lower export sales, weakness in the automotive sector and reports citing softer demand from energy sector clients.”