The widely supported US dollar climbed to its highest point in 21 months against its Canadian counterpart on Tuesday, as market participants were focusing on the crucial non-farm payrolls report from the United States, scheduled for release this Friday.
USD/CAD reached a session high at 1.0577 at 12:29 GMT, the highest value since October 2011, after which consolidation followed at 1.0556. The cross was up by 0.58% for the day. Support was expected at current session low, 1.0491, while resistance was likely to be met at 1.0650.
The greenback was under ongoing support after latest US economic activity data. The Institute for Supply Management (ISM) reported on Monday, that its manufacturing PMI rose to a reading of 50.9 in June from 49.0 in May. Experts had projected a value of 50.5. Values above 50.0 are a signal of expansion in activity. Additionally, US construction activity gained strength in May, registering the largest jump for over three years. Total Construction Spending in the United States increased by 0.5% on a monthly basis to a seasonally adjusted annual value of 874.9 million USD, marking the highest level since September 2009. This was another indicator to show that US economy was on the right track to recovery. Later in the trading day the US will release information, regarding the factory orders, while tomorrow a series of vital fundamental indicators was to be announced, including the Trade Balance, Initial Jobless Claims and ISM Non-Manufacturing Composite index in the states.
Meanwhile, Canadian dollar was fractionally lower against the euro, as EUR/CAD pair added 0.08% to 1.3723.
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