March Ivey Purchasing Managers Index Misses Estimate; CAD Pares Gain
THE TAKEAWAY:Canada Ivey Purchasing Managers Index Falls to 63.5 in March> Lower Employment, Inventories and Prices Levels > CAD Pares Gain
Canadian Ivey Purchasing Managers Index (PMI), declines more than expected in March, suggesting lower pace of purchasing activity in the Canadian economy. The Purchasing Management Association of Canada and the Richard Ivey School of Business jointly reported today that the Ivey PMI, a leading indicator used to predict future trends, declines to 63.5 on a seasonally adjusted basis in March from 66.5 in February. The corresponding figure for March 2011 was 73.2 and for March 2010 was 57.5. The print falls short of prediction of 65.5 from Bloomberg News survey.
March Canada Ivey PMI was still in a positive territory as figures over 50 indicate expansion; otherwise values under 50 signify contraction. Ivey Employment Index for March stood at 52.7, suggesting that employment was higher than the previous month. Inventories were lower in March as the Ivey Inventories Index printed at 45.7. Besides, price pressure continued to rise as a result of persistent strength of Canadian dollar. Prices Index stands at 63.9 compared with 73.1 in February. In contrast, Ivey Supplier Deliveries Index dropped to 47.4 last month from 48.8 in the previous month, indicating that deliveries were slower than February
USDCAD 1-minute Chart: April 05, 2012
Chart created using Strategy Trader – Prepared by Trang Nguyen
Canadian dollar immediately gained ground versus most of its major trading partners after March employment data showed strong improvement in the labor market after four months of stagnation. Following the weaker than expected Ivey PMI report, the loonie trims advance against the greenback. As can be seen from the 1-minute USDCAD chart above, the U.S. dollar saw some correction, rising to $C0.9926 from the session low of $C0.9912.
--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com
To contact Trang, email email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.