Investing.com – The U.S. dollar tumbled to a 32-month low against its Canadian counterpart on Monday, as crude oil, Canada’s largest export, rallied after data showing manufacturing in two of Asia’s biggest economies remained robust.
USD/CAD hit 0.9904, the pair’s lowest since May 5, 2008; the pair subsequently consolidated at 0.9903, tumbling 0.77%.
The pair was likely to find support at 0.9818, the low of May 21 2008, and resistance at 1.0006, the high of December 31.
Earlier in the day, crude oil prices jumped 0.99% to hit USD92.31 a barrel, a 27-month high. The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
Crude’s gains came after official data showed that China's Purchasing Managers Index fell to 53.9 in December from 55.2 in November. However, markets viewed the slowdown as a positive development as it lessened the risk of Beijing taking further action to curb inflation.
Meanwhile, a separate report showed that manufacturing activity in South Korea accelerated in December to its fastest rate in seven months, propelled by an increase in new orders.
The loonie was also sharply higher against the euro, with EUR/CAD plunging 1.24% to hit 1.3195.
Later in the day, the U.S. was to publish key ISM manufacturing data.
USD/CAD hit 0.9904, the pair’s lowest since May 5, 2008; the pair subsequently consolidated at 0.9903, tumbling 0.77%.
The pair was likely to find support at 0.9818, the low of May 21 2008, and resistance at 1.0006, the high of December 31.
Earlier in the day, crude oil prices jumped 0.99% to hit USD92.31 a barrel, a 27-month high. The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
Crude’s gains came after official data showed that China's Purchasing Managers Index fell to 53.9 in December from 55.2 in November. However, markets viewed the slowdown as a positive development as it lessened the risk of Beijing taking further action to curb inflation.
Meanwhile, a separate report showed that manufacturing activity in South Korea accelerated in December to its fastest rate in seven months, propelled by an increase in new orders.
The loonie was also sharply higher against the euro, with EUR/CAD plunging 1.24% to hit 1.3195.
Later in the day, the U.S. was to publish key ISM manufacturing data.