Investing.com – The U.S. dollar was lower against its Canadian counterpart on Tuesday, after official data showed that U.S. third quarter economic growth was unexpectedly revised down.
USD/CAD hit 1.0359 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.0371, shedding 0.27%.
The pair was likely to find support at 1.0267, Monday’s low and resistance at 1.0418, Monday’s high and a six-week high.
The U.S. Commerce Department’s second estimate of gross domestic product showed that the economy grew at an annualized rate of 2% in the three months to September, down from a previous estimate of 2.5%.
Economists had expected the rate of growth to remain unchanged in the third quarter.
The report said the revision was due in large part to a USD8.5 billion decline in business inventories, which removed 1.55% from GDP growth. Inventories had previously been estimated to have increased by USD5.4 billion.
Meanwhile, in Canada official data showed that retail sales rose by a seasonally adjusted 1.0% in September, doubling expectations for a 0.5% gain.
It was the fifth increase in six months and was the largest advance since November 2010.
Core retail sales, which exclude automobile sales, rose by a seasonally adjusted 0.5% in September, beating expectations for a 0.4% increase.
The Canadian dollar was also supported by stronger crude oil prices, with the January crude contract on the New York Mercantile Exchange surging 0.85% to trade at USD97.73 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was almost unchanged against the euro, with EUR/CAD dipping 0.02% to hit 1.4023.
Later Tuesday, the U.S. Federal Reserve was to publish the minutes of its November policy meeting.
USD/CAD hit 1.0359 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.0371, shedding 0.27%.
The pair was likely to find support at 1.0267, Monday’s low and resistance at 1.0418, Monday’s high and a six-week high.
The U.S. Commerce Department’s second estimate of gross domestic product showed that the economy grew at an annualized rate of 2% in the three months to September, down from a previous estimate of 2.5%.
Economists had expected the rate of growth to remain unchanged in the third quarter.
The report said the revision was due in large part to a USD8.5 billion decline in business inventories, which removed 1.55% from GDP growth. Inventories had previously been estimated to have increased by USD5.4 billion.
Meanwhile, in Canada official data showed that retail sales rose by a seasonally adjusted 1.0% in September, doubling expectations for a 0.5% gain.
It was the fifth increase in six months and was the largest advance since November 2010.
Core retail sales, which exclude automobile sales, rose by a seasonally adjusted 0.5% in September, beating expectations for a 0.4% increase.
The Canadian dollar was also supported by stronger crude oil prices, with the January crude contract on the New York Mercantile Exchange surging 0.85% to trade at USD97.73 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was almost unchanged against the euro, with EUR/CAD dipping 0.02% to hit 1.4023.
Later Tuesday, the U.S. Federal Reserve was to publish the minutes of its November policy meeting.