Yesterday’s trade saw USD/CAD within the range of 1.2404-1.2541. The pair closed at 1.2428, down 0.54% on a daily basis and extending losses from Tuesday.
At 10:01 GMT today USD/CAD was down 0.14% for the day to trade at 1.2412. The pair touched a daily low at 1.2407 at 9:58 GMT.
Fundamentals
United States
Initial Jobless Claims
The number of people in the United States, who filed for unemployment assistance for the first time during the week ended on February 27th, probably decreased to 295 000 from 313 000 in the prior week. The latter has been the highest level since the week ended on January 9th. The 4-week moving average, an indicator lacking seasonal effects, was 294 500, marking an increase of 11 500 from the preceding weeks revised down average of 283 000.
Initial jobless claims number is a short-term indicator, reflecting lay-offs in the country. In case the number of claims fell more than projected, this would have a bullish effect on the US dollar. The Department of Labor is to release the weekly report at 13:30 GMT.
Factory Orders
Factory orders in the United States probably rose 0.2% in January compared to December, following five consecutive months of declines. In December orders fell 3.4%. This indicator represents the total value of new purchase orders, placed at manufacturers for durable and non-durable goods, and can provide insight into inflation and growth in the US manufacturing sector. In case new orders rose more than anticipated, this would have a bullish effect on the greenback. US Census Bureau will release the official data at 15:00 GMT.
Canada
Ivey PMI
Activity among purchasing managers in Canada probably improved in February, with the corresponding seasonally adjusted PMI coming in at a value of 50.0. In January the gauge slipped below the key 50.0 level for the first time since June 2014, to reach 45.4. This indicator is based on a survey sponsored by Richard Ivey School of Business and Canadian Purchasing Management Association. It encompasses 175 respondents in both public and the private sector, selected in accordance with their geographic location and activity, so that the entire economy is covered. Activity among purchasing managers is closely watched by market players, as managers usually have an early access to data regarding performance of their companies, which could be used as a leading indicator of overall economic activity. Readings at the key level of 50.0 are indicative of no change in business conditions. In case, however, the PMI demonstrated a larger-than-expected improvement, this would boost demand for the loonie. The official result is due out at 15:00 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2458. In case USD/CAD manages to breach the first resistance level at 1.2511, it will probably continue up to test 1.2595. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2648.
If USD/CAD manages to breach the first key support at 1.2374, it will probably continue to slide and test 1.2321. With this second key support broken, the movement to the downside will probably continue to 1.2237.
The mid-Pivot levels for today are as follows: M1 – 1.2279, M2 – 1.2348, M3 – 1.2416, M4 – 1.2485, M5 – 1.2553, M6 – 1.2622.
In weekly terms, the central pivot point is at 1.2519. The three key resistance levels are as follows: R1 – 1.2654, R2 – 1.2801, R3 – 1.2936. The three key support levels are: S1 – 1.2372, S2 – 1.2237, S3 – 1.2090.
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