Forex - USD/CAD hits fresh 2-month low after strong Canadian PMI data

Published 10/06/2010, 10:29 AM
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Investing.com – The Canadian dollar surged to a fresh 2-month high against its U.S. counterpart on Wednesday, after the release of better-than-expected Canadian PMI data.

USD/CAD hit 1.0112 during European afternoon trade, the pair’s lowest since August 5; the pair subsequently consolidated at 1.0127, shedding 0.32%.

The pair was likely to find support at 1.0015, the low of April 30 and resistance at 1.0272, Tuesday’s high.

Earlier in the day, Canada’s Richard Ivey School of Business said its purchasing managers’ index rose to 70.3 in September, after rising to 65.9 in August. Analysts had expected the index to decline to 63.2 in September.

A figure above 50.0 indicates industry expansion, below indicates contraction.

The loonie was also up against the euro, with EUR/CAD shedding 0.08% to hit 1.4044.

Also Wednesday, industry data showed that U.S. ADP non-farm payrolls dropped more-than-expected in September.

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