USD/CAD flat on the day after US and Canada data

Following a rise to 1.3675 during the early trading hours of the American session, the USD/CAD pair erased its daily earnings and erased back to mid 1.36's after the macro data released from the U.S. and Canada. At the moment, the pair is trading at 1.3555, flat on the day.

Markit Manufacturing PMI in the U.S. dropped to 52.8 in April and recorded its lowest reading in seven months. In the meantime, same data for Canada leaped to its highest level since 2011 at 55.9, boosted by sharp rises in new orders and employment sub-indexes.

• Canada: Manufacturing PMI hits six-year peak in April - Markit
• US: Slowest improvement in manufacturing business conditions since September 2016 - Markit
• US: April PMI registered 54.8, a decrease of 2.4 from March - ISM

Earlier in the session, Fed's favorite inflation indicator, PCE index, dropped below 2% target mark and came in at 1.8% on a yearly basis in March. Additionally, both the personal spending and income figures missed the expectations. The dismal data pushed the US Dollar Index to a session low around 99.75 and the index is now at 98.85, down 0.04% on the day.

Despite the weak greenback, the pair is having a difficult time extending its bearish momentum as the crude oil prices continue to fall on Monday. The barrel of West Texas Intermediate is trading at $48.75, losing more than 1% on Monday. 

Technical outlook

The initial hurdle for the pair aligns at 1.3695 (Friday high) ahead of 1.3735 (2016, Feb. 25 high) and 1.38 (psychological level). To the downside, supports could be seen at 1.3600 (psychological level/Dec. 28 high), 1.3540 (Apr. 27 low) and 1.3410 (Apr. 24 low).