Investing.com - The U.S. dollar fell to fresh five-and-a-half month lows against the Canadian dollar on Thursday as a sharp downward revision to U.S. first quarter growth continued to weigh.
USD/CAD edged down 0.08% to 1.0710, the lowest level since January 7.
The pair was likely to find support at 1.0675 and resistance at 1.0750, Wednesday’s high.
The greenback remained under pressure after data on Wednesday showing that the U.S. economy contracted at a faster pace than initially estimated in the first quarter indicated that the Federal Reserve may keep rates on hold for an extended period.
U.S. gross domestic product contracted at an annual rate of 2.9% in the first three months of the year, the Commerce Department said, compared to the consensus forecast for a decline of 1.7%.
U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.
Data on Thursday showed that initial U.S. jobless claims dipped by 2,000 people to 312,000 last week, a sign that the recovery in the labor market is continuing.
A separate report showed that personal incomes rose by 0.4% in May, in line with forecasts, but personal spending only rose 0.2%, below forecasts for 0.4%.
Elsewhere Thursday, the loonie, as the Canadian dollar is also known, was close to five-and-a-half month lows against the euro, with EUR/CAD down 0.29% to 1.4567.