Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Wednesday, supported by the release of upbeat U.S. economic reports, while investors awaited the outcome of the Federal Reserve's monthly policy meeting.
USD/CAD hit 1.0335 during early U.S. trade, the pair's highest since July 23; the pair subsequently consolidated at 1.0318, adding 0.14%.
The pair was likely to find support at 1.0258, Tuesday's low and resistance at 1.0393, the high of July 19.
The Bureau of Economic Analysis said that U.S. gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The report showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
Separately, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
In Canada, official data showed that the GDP grew at a seasonally adjusted rate of 0.2% in May, in line with expectations, after a growth of 0.1% the previous month.
Market participants were looking ahead to the Fed's upcoming policy statement due later in the day amid hopes the central bank will offer more clues on when it could slow the pace of its monthly bond purchases.
The loonie was higher against the euro with EUR/CAD edging down 0.11%, to hit 1.3652.
Also Wednesday, official data showed that the number of unemployed people in Germany fell by 7,000 in June, confounding expectations for a 4,000 fall. Germany's unemployment rate remained unchanged at 6.8% in June, in line with expectations.
A separate report showed that German retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.
In addition, the unemployment rate in the euro zone held steady at 12.1% last month, confounding expectations for a rise to 12.2%.
USD/CAD hit 1.0335 during early U.S. trade, the pair's highest since July 23; the pair subsequently consolidated at 1.0318, adding 0.14%.
The pair was likely to find support at 1.0258, Tuesday's low and resistance at 1.0393, the high of July 19.
The Bureau of Economic Analysis said that U.S. gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The report showed personal consumption grew 1.8% in the second quarter, above expectations for 1.6%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
Separately, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
In Canada, official data showed that the GDP grew at a seasonally adjusted rate of 0.2% in May, in line with expectations, after a growth of 0.1% the previous month.
Market participants were looking ahead to the Fed's upcoming policy statement due later in the day amid hopes the central bank will offer more clues on when it could slow the pace of its monthly bond purchases.
The loonie was higher against the euro with EUR/CAD edging down 0.11%, to hit 1.3652.
Also Wednesday, official data showed that the number of unemployed people in Germany fell by 7,000 in June, confounding expectations for a 4,000 fall. Germany's unemployment rate remained unchanged at 6.8% in June, in line with expectations.
A separate report showed that German retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.
In addition, the unemployment rate in the euro zone held steady at 12.1% last month, confounding expectations for a rise to 12.2%.