Loonie Attempts Rally Against US Dollar on Upbeat Canadian Ivey PMI

The Canadian dollar today attempted to rally higher against its US counterpart in the American session after the release of the upbeat Canadian Ivey PMI data. The USD/CAD currency pair today traded mostly directionless amid a lack of fundamental triggers to push the pair decisively in any direction.
The USD/CAD currency pair today rallied from an opening low of 1.3338 to a high of 1.3372 before heading lower during the American session.
The currency pair today rallied higher in the Asian session as crude oil prices pulled back as tracked by the West Texas Intermediate, which hit a low of 61.89. The loonie seems detached from oil prices given that crude oil prices are up over 35% this year, but the loonies still lags behind. The loonie’s recent gains can be largely attributed to the positive trade headlines as the US and China remain optimistic about a trade deal. Recent data from the Canadian docket has indicated that the country’s economy has slowed down as the country suffers from low oil exports and declining productivity.
The loonie rallied after the release of the Canadian Ivey PMI data, which came in at 54.3 beating expectations set at 51.1. The pair’s rally was limited by the greenback’s recovery as tracked by the US Dollar Index, which hit a high of 97.34, reversing most of the loonie’s gains.
The currency pair’s future performance is likely to be affected by tomorrow’s Canadian employment data and the US non-farm payrolls report.
The USD/CAD currency pair was trading at 1.3349 as at 15:38 GMT having dropped from a high of 1.3372. The CAD/JPY currency pair was trading at 83.58 having risen from a low of 83.34.

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