Canada RBC Manufacturing PMI for August 49.4 vs 50.8 in July

RBC Canadian Manufacturing PMI

The 49.4 takes the index below the 50 level suggesting a contraction in the Canadian manufacturing sector. The index was below the 50 reading from February to May. In June the index moved to 51.3 which was the high for the calendar year.

The below graph shows the pressure in the manufacturing sector.

The USDCAD has moved a touch higher on the news. Earlier today, quarterly GDP came in better (although still down) at -0.5% vs. -1.0% estimate. The MoM GDP for June was also better at +0.5% vs. +0.2%. Crude oil futures are down nearly 4% in trading today. This should be supportive to the USDCAD but so far in the North America session, the market is more focused on the better than expected GDP.