• Canadian manufacturing sector went into contraction in March.
• USD/CAD trades in negative territory at around 1.3450.

Business activity in the Canadian manufacturing sector contracted in March with S&P Global Manufacturing PMI declined to 48.6 from 52.4 in February. This reading came in below the market expectation of 51.7.

Commenting on the survey's findings, "the recovery of Canada’s manufacturing economy stalled during March, with renewed falls in both production and new orders signalled," said Paul Smith, Economics Director at S&P Global Market Intelligence.

"Broader macroeconomic uncertainty, and the negative impact of rising prices on client purchasing power were key factors that weighed on market demand," Smith further noted.

Market reaction

USD/CAD stays under bearish pressure despite the disappointing data and was last seen losing 0.5% on the day at 1.3452.