The volume of Canada’s manufacturing sales dropped by 0.9% in December, much worse than a rise of 0.2% expected. The figure is watched by loonie traders. Core sales fell 0.6%.
Is the C$ recovery over? USD/CAD is rising and trading at 1.0965. The pair traded under 1.0950 before the release.
In addition to the disappointing figure for December, the number for November was revised to the downside: a rise of 0.5% instead of 1% originally reported. This aggravates the disappointment.
After a struggle with 1.10, USD/CAD seemed to have fallen decisively below the line, with the Canadian dollar enjoying a recovery. A recovery in jobs, reported one week ago, certainly supported this notion.
1.10 is the clear resistance line while the low of 1.0940 is immediate support. For more lines, events and analysis, see the Canadian $ forecast.
Next week, retail sales and CPI numbers are expected, and they will also have a relatively significant impact on the loonie.
