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Forex - USD/CAD trims losses after U.S. retail sales data

Published 04/13/2011, 09:39 AM
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Investing.com – The Canadian dollar trimmed gains against its U.S. counterpart on Wednesday, after a government report showing some measures of U.S. retail sales improved more-than-expected in March.

USD/CAD eased off 0.9584, the daily low to hit 0.9607 during early U.S. trade, still down 0.21% on the day.

The pair was likely to find support at 0.9552, Tuesday’s low and resistance at 0.9656, Tuesday’s high and a one-week high.

The Commerce Department said retail sales rose for the ninth consecutive month in March, rising 0.4% to a seasonally adjusted USD396.3 billion, slightly less than the 0.5% gain analysts expected.

February’s sales growth was revised up to 1.1%, up from 1.0%.

Core retail sales, which excluded a 1.7% decrease in motor vehicles sales, rose 0.8% to USD 319.9 billion, largely in line with the 0.7% growth that economists had expected.

Sales at gasoline stations were up 2.6% as pump prices increased.

Meanwhile, the Canadian dollar was up against the euro, with EUR/CAD shedding 0.16% to hit 1.3912.

Later in the day, the Bank of Canada was to publish its monetary policy report. Also Wednesday, the U.S. was to publish government data on crude oil inventories, while the Federal Reserve was to publish its Beige Book.

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