• USD/CAD advanced on Thursday as greenback firmed after report showed that U.S. business activity picked up pace in August.
• S&P Global’s flash U.S. Composite PMI rose to 55.4 in August, the highest since December, up from 55.1 in July. A reading above 50 signals private sector expansion.
• The U.S. services sector eased to 55.4 in August from 55.7 in July, beating economists’ expectations of 54.2 .
• The gain was driven mainly by the manufacturing sector, where the flash PMI jumped to 53.3 in August, the highest since May 2022, up from 49.8 in July and defying forecasts of a second month of contraction.
• At GMT 16:47, the US dollar was up 0.19% to 1.3901 against the Canadian dollar.
• Immediate resistance is located at 1.3922(Higher BB), any close above will push the pair towards 1.4000(Psychological level).
• Support is seen at 1.3871 (Daily low) and break below could take the pair towards 1.3809(38.2%fib).
Recommendation: Good to buy around 1.3880, with stop loss of 1.3800 and target price of 1.3960
