Forex: USD/CAD rallies after US and Canada data

From 1.0025 area, that was serving as resistance during the European morning, the USD/CAD broke through and rallied to as high as 1.0067 on Canada and US data releases.

Canada manufacturing shipments fell -3.1% in December, a wider drop than the -0.8% expected. US NY empire state manufacturing came in at 10.08 in February, surprising analysts that were only expecting an improvement from -7.78 to -2.00.

Although capacity utilization in the US improved from 78.8% (revised from 79.3%) to 79.1% in January, beating 78.9% consensus, industrial production fell -0.1%, instead of rising 0.2% as expected. Last month's data was revised lower, from 0.4% to 0.3%.

MIG Bank analysts expect the USD/CAD to edge lower as it has failed to break its resistance at 1.0100. "The inability to break the resistance area between 1.0057 and 1.0100 could be the start of a medium-term bearish reversal pattern", wrote analyst Bijoy Kar, pointing to an hourly resistance at 1.0044 (13/02/2013 high), while supports can be found at 1.0000 (14/02/2013 low) and 0.9933 (07/02/2013 low).