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Forex - USD/CAD slides lower after U.S., Canadian data

Published 03/17/2014, 09:22 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was lower against its Canadian counterpart on Monday, as disappointing U.S. manufacturing activity data weighed on the greenback, although a downbeat economic report from Canada limited the loonie's gains.

USD/CAD hit 1.1045 during European afternoon trade, the pair's lowest since March 13; the pair subsequently consolidated at 1.1070, shedding 0.32%.

The pair was likely to find support at 1.0980, the low of March 7 and resistance at 1.1153, the high of March 12.

In a report, the Federal Reserve Bank of New York said its Empire State manufacturing index ticked up to 5.6 this month, from a reading of 4.5 in February, confounding expectations for a rise to 6.

Data also showed that U.S. industrial production rose 0.6% in February, exceeding expectations for a 0.1% gain. Industrial production in January was revised to a 0.2% fall from a previously estimated 0.3% decline.

In Canada, official data showed that foreign securities purchases rose by C$1.09 billion in January, compared to expectations for a C$3.24 billion increase, after a C$4.28 billion decline the previous month.

Elsewhere, over 90% of Crimean voters on Sunday chose to break with Ukraine and join Russia. Crimea's Parliament on Monday formally asked to join the Russian Federation.

U.S. President Barack Obama said Washington rejected the results of the referendum and warned that the U.S. was ready to impose sanctions on Moscow.

The loonie was higher against the euro, with EUR/CAD declining 0.36% to 1.5395.

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