USD/CAD on session highs after strong ISM manufacturing data

US dollar rose to a session high against its Canadian peer on Tuesday, following the release of upbeat manufacturing data out of the United States.

USD/CAD reached 1.0325 at 14:25 GMT, currently the highest point for Tuesday trade. Support was likely to be received at September 24th low, 1.0267, while resistance was to be met at September 26th high, 1.0339.

The Institute for Supply Management (ISM) said in a report earlier today, that its index, gauging manufacturing activity in the United States, rose to a value of 56.2 in the month of September, or the highest level this year, from 55.7 in August. Experts had projected that the index will slow down to a reading of 55.1. The sub-index of new orders decreased 2.7 points to reach 60.5 in September, while the sub-index of output added 0.2 points to 62.6. The index, gauging employment in the sector, increased by 2.1 points to reach 55.4 in the same month.

Markit Economics, on the other hand, published data, according to which the final reading of its manufacturing PMI for the United States remained unchanged at 52.8 in September in line with expectations. Values above the level of 50.0 usually indicate that activity in the sector has increased.

In the mean time, markets remained edgy, as it was uncertain in what way the political deadlock in Washington will influence negotiations over the possible increase of the US debt ceiling. The Treasury in the country has estimated that it will be reached by October 17th.

In addition, the major statistical agency in the United States, Census Bureau, a division of the Trade Department in the country, announced that it will not be able to publish economic reports due to the partial government shutdown.

Elsewhere, the Canadian dollar was lower against the euro, as EUR/CAD cross added 0.20% for the day to trade at 1.3976 at 14:47 GMT. GBP/CAD pair was gaining even more, 0.31%, to trade at 1.6741 at 14:49 GMT.