Investing.com - The Canadian dollar was steady to higher against its U.S. counterpart on Wednesday after the Bank of Canada moved to leave benchmark interest rates unchanged at 1.00%.
In Asian trading on Wednesday, USD/CAD hit 1.0118, down 0.01%, up from a low of 1.0116 and off a high of 1.0124.
The pair sought to test support at 1.0101, the low of July 5, and resistance at 1.0157, the high of July 5.
The greenback hit a session high against the Canadian dollar earlier, after official data showed that Canadian manufacturing sales unexpectedly fell in May, declining for the second consecutive month.
Monetary policy statements reversed those losses.
"While global headwinds are restraining Canadian economic activity, domestic factors are expected to support moderate growth in Canada. The Bank expects the economy to grow at a pace roughly in line with its production potential in the near term, before picking up through 2013," the bank said in a statement.
"Consumption and business investment are expected to be the primary drivers of growth, reflecting very stimulative domestic financial conditions. However, their pace will be influenced by external headwinds, notably the effects of lower commodity prices on Canadian incomes and wealth, as well as by record-high household debt."
Meanwhile in the U.S., Federal Reserve Chairman Ben Bernanke appeared before Congress and reiterated an earlier policy stance that the bank is ready to stimulate the economy via easing policies but remains on standby at this time, which gave the dollar some support.
U.S. and Canadian monetary policy statements offset weak manufacturing figures in the country.
Canadian manufacturing sales unexpectedly fell 0.4% in May, declining for the second consecutive month and below market forecasts for a gain of 1.0%.
The Canadian dollar, meanwhile, was up against the euro and up against the yen, with EUR/CAD down 0.02% and trading at 1.2441 and CAD/JPY up 0.03% at 78.16.
Later Wednesday, Bank of Canada Governor Mark Carney is due to speak, while the bank will release its detailed monetary policy report.
The U.S. will release data on building permits, and a report on housing starts.
The country is also to release government data on crude oil stockpiles.
Federal Reserve Chairman Ben Bernanke is to testify for a second day on the on the bank’s monetary policy report before Congress.
The Fed will also release its Beige Book, a group of summaries on the nation's economy, later in the day.
In Asian trading on Wednesday, USD/CAD hit 1.0118, down 0.01%, up from a low of 1.0116 and off a high of 1.0124.
The pair sought to test support at 1.0101, the low of July 5, and resistance at 1.0157, the high of July 5.
The greenback hit a session high against the Canadian dollar earlier, after official data showed that Canadian manufacturing sales unexpectedly fell in May, declining for the second consecutive month.
Monetary policy statements reversed those losses.
"While global headwinds are restraining Canadian economic activity, domestic factors are expected to support moderate growth in Canada. The Bank expects the economy to grow at a pace roughly in line with its production potential in the near term, before picking up through 2013," the bank said in a statement.
"Consumption and business investment are expected to be the primary drivers of growth, reflecting very stimulative domestic financial conditions. However, their pace will be influenced by external headwinds, notably the effects of lower commodity prices on Canadian incomes and wealth, as well as by record-high household debt."
Meanwhile in the U.S., Federal Reserve Chairman Ben Bernanke appeared before Congress and reiterated an earlier policy stance that the bank is ready to stimulate the economy via easing policies but remains on standby at this time, which gave the dollar some support.
U.S. and Canadian monetary policy statements offset weak manufacturing figures in the country.
Canadian manufacturing sales unexpectedly fell 0.4% in May, declining for the second consecutive month and below market forecasts for a gain of 1.0%.
The Canadian dollar, meanwhile, was up against the euro and up against the yen, with EUR/CAD down 0.02% and trading at 1.2441 and CAD/JPY up 0.03% at 78.16.
Later Wednesday, Bank of Canada Governor Mark Carney is due to speak, while the bank will release its detailed monetary policy report.
The U.S. will release data on building permits, and a report on housing starts.
The country is also to release government data on crude oil stockpiles.
Federal Reserve Chairman Ben Bernanke is to testify for a second day on the on the bank’s monetary policy report before Congress.
The Fed will also release its Beige Book, a group of summaries on the nation's economy, later in the day.