Investing.com - The U.S. dollar fell to three-week lows against its Canadian counterpart on Wednesday, as a rebound in oil prices lent support to the commodity-related Canadian currency, while Tuesday’s downbeat U.S. data still weighed on the greenback.
USD/CAD hit 1.2990 during early U.S. trade, the pair’s lowest since July 19; the pair subsequently consolidated at 1.3020, retreating 0.75%.
The pair was likely to find support at 1.3936, the low of July 19 and resistance at 1.3191, Tuesday’s high.
The Canadian dollar was boosted by a move higher in oil prices ahead of the weekly U.S. supply data due later in the day.
Meanwhile, the greenback after data on Tuesday showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March.
The weak data overshadowed last week’s strong U.S. nonfarm payrolls report, which had boosted expectations for a rate hike by the Federal Reserve before the end of the year and sent the U.S. dollar broadly higher.
The loonie was also higher against the euro, with EUR/CAD shedding 0.20% to 1.4554.