Investing.com - The U.S. dollar dropped to fresh nine-month lows against its Canadian counterpart on Tuesday, as a rebound in oil prices lent support to the commodity-related Canadian currency, while downbeat U.S. housing sector data weakened the greenback.
USD/CAD hit 1.2702 during early U.S. trade, the pair’s lowest since July 2015; the pair subsequently consolidated at 1.2705, retreating 0.63%.
The pair was likely to find support at 1.2470 and resistance at 1.2827, the high of April 13.
The Canadian dollar strengthened as oil prices moved higher on Tuesday, as an oil worker strike in Kuwait cut the country’s crude production nearly in half.
Crude had tumbled the previous day after a meeting of the world’s major oil producers in Doha, Qatar on Sunday ended without an agreement on curbing production intended to prop up prices.
Meanwhile, the U.S. Census Bureau said that building permits fell 7.7% in March to 1.086 million units, after a 2.2% drop the previous month to 1.177 million units. Analysts had expected building permits to rise to 1.200 units last month.
U.S. housing starts declined by 8.8% in March to 1.089 million units after increasing by 6.9% to 1.194 million units in February, whose figure was revised from a previously estimated 1.178 million units.
Analysts had expected housing starts to hit 1.170 million units in March.
The loonie was higher against the euro, with EUR/CAD shedding 0.15% to 1.4442.