Canada’s manufacturing sector showed a decline in February 2016. This is confirmed by Statistics Canada. Analysts point out that the key factor that triggered the decline was a auto and oil sales drop. February’s sales drop amounted to 3.3%.
After January’s 2.2% gain, experts expected that February was going to be a bearish month, with a 1,5% drop. By the way, this is the first time in 3 months that the manufacturing sector is seeing a sales drop, Market Leader reports. 16 out of 21 sectors saw a sales decline over the reporting period, Statistics Canada reports. As we have already mentioned, 2/3 of the decline had to do with lower sales of coal, crude oil and vehicles. As for the out sales, they dropped by 10,5% in February 2016. When adjusted for seasonality, the sales of coal and oil products dropped by 12,6% over the same reporting period.
FOREX
In the meantime, Masterforex-V Academy reports that the Canadian Dollar is still rallying against its American counterpart within the scope of the same mid-term rally, which means that USDCAD is going down. To be more specific, the experts say that the currency pair is moving within the scope of wave 3/C of level H16. USDCAD is developing wave a(C )/C inside the move.
The closest major levels of support are 01.2654/30, 1.2448/24. A break above the top of the descending MF sloping channel and MF pivot 1.2988 is going to put an end to the existing price move.
