Investing.com – The U.S. dollar advanced against its Canadian counterpart on Wednesday, as the view that a solution to the debt crisis in the euro zone remains distant saw investors shun riskier assets for the perceived safety of the greenback.
USD/CAD hit 1.0415 during early U.S. trade, the pair’s highest since November 28; the pair subsequently consolidated at 1.0396, gaining 0.57%.
The pair was likely to find support at 1.0325, the session low and resistance at 1.0491, the high of November 24.
Concerns over sovereign ratings downgrades across the euro zone continued to weigh heavily, despite fair investor demand at auctions of Italian and German government debt earlier in the day.
Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, but saw bond yields rise to a euro-era highs.
Germany auctioned EUR4.18 billion of two-year bonds at record low yields, reassuring investors after an auction of 10-year bonds last month met with extremely weak investor demand.
The Canadian dollar was also hit after official data showed that manufacturing sales fell more-than-expected in October, after rising in each of the three previous months.
Statistics Canada said that manufacturing sales declined by a seasonally adjusted 0.8% after climbing by 2.6% in September, disappointing expectations for a 0.6% slide.
A separate report showed that an index of Canadian leading economic indicators rose more-than-expected in November.
The Canadian dollar was also lower against the euro, with EUR/CAD easing up 0.14% to hit 1.3501.
Also Wednesday, official data showed that U.S. import prices rose less-than-expected in November.
USD/CAD hit 1.0415 during early U.S. trade, the pair’s highest since November 28; the pair subsequently consolidated at 1.0396, gaining 0.57%.
The pair was likely to find support at 1.0325, the session low and resistance at 1.0491, the high of November 24.
Concerns over sovereign ratings downgrades across the euro zone continued to weigh heavily, despite fair investor demand at auctions of Italian and German government debt earlier in the day.
Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, but saw bond yields rise to a euro-era highs.
Germany auctioned EUR4.18 billion of two-year bonds at record low yields, reassuring investors after an auction of 10-year bonds last month met with extremely weak investor demand.
The Canadian dollar was also hit after official data showed that manufacturing sales fell more-than-expected in October, after rising in each of the three previous months.
Statistics Canada said that manufacturing sales declined by a seasonally adjusted 0.8% after climbing by 2.6% in September, disappointing expectations for a 0.6% slide.
A separate report showed that an index of Canadian leading economic indicators rose more-than-expected in November.
The Canadian dollar was also lower against the euro, with EUR/CAD easing up 0.14% to hit 1.3501.
Also Wednesday, official data showed that U.S. import prices rose less-than-expected in November.