Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Wednesday, as demand for the greenback broadly strengthened ahead of the Federal Reserve's highly-anticipated policy statement due later in the day.
USD/CAD hit 1.2968 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2942, adding 0.17%.
The pair was likely to find support at 1.2900, the low of July 16 and resistance at 1.3043, Tuesday's high.
Investors were waiting to see if Fed policymakers will give any indication on the timing or pace of future interest rate increases.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter after an unusually harsh winter.
Data on Tuesday showed that U.S. consumer confidence unexpectedly deteriorated this month as a less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment.
Other reports on Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.
The loonie was steady against the euro, with EUR/CAD at 1.4284.