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USDCAD : Trimming Its Losses After Upbeat Data

USDCAD today weakened after the release of Fed Manufacturing Data and reversed its decline by trimming all the losses after the Industrial Production and Capacity Utilization Data came out. It’s a leading indicator of economic health as production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment level and earnings. During the European afternoon session the pair declined significantly to the March 13 lowest level. But soon the after the upbeat industrial data the pair bounced back from this level and found resistance at 1.1083 breaking the resistance at 1.1075. Although from the stochastic oscillator, it seems like the pair will rise as the signal line is below the moving average line signalling the short term uptrend.

According to the report, the industrial production increased .6% in February after a decline of .2% in January. Mnaufacturing output rose .8% and nearly reversed its decline of .9% in January which in part was a result of bad weather. The gain in factory production was the largest since last August.