USD/CAD trims losses post-ISM, near 1.3130

The greenback has recovered part of the ground lost to its Canadian peer on Monday, now sending USD/CAD to the 1.3125/30 band following US releases.

USD/CAD supported near 1.3070

After a brief test of daily lows in the 1.3070/65 region, buyers seem to have turned up and lifted the pair back to levels above the 1.3100 mark.

Adding to the daily recovery, the key US ISM Manufacturing has surprised investors to the upside during September, rising above estimates to 51.1 and reverting August’s drop to 49.4. Furthermore, the manufacturing PMI tracked by Markit has followed suit, improving a tad to 51.5 for the same period from 51.4.

Back to Canada, and still in the manufacturing sector, RBC’s PMI has come in short of forecasts for the month of September at 50.3 vs. 51.5 expected.

According to the latest CFTC report, speculators have taken CAD back to the net short area for the first time since March 29, while Open Interest dropped to the lowest levels since that time during the week ended on September 27.

USD/CAD significant levels

As of writing the pair is losing 0.01% at 1.3125 facing the next support at 1.3068 (low Oct.3) followed by 1.2996 (low Sep.22) and then 1.2818 (low Sep.7). On the other hand, a break above 1.3276 (high Sep.27) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop).