Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Wednesday, after the Bank of Canada left interest rates unchanged, although mounting expectations for an upcoming U.S. rate hike continued to lend support to the greenback.
USD/CAD hit 1.3263 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3264, easing 0.08%.
The pair was likely to find support at 1.3230, the low of December 5 and a one-and-a half month low and resistance at 1.3357, the high of December 5.
In a widely expected move, the BoC said it was leaving its overnight cash rate unchanged at a record low 0.50%, where it has been since July 2015.
But the commodity-related Canadian dollar’s gains were capped by declining oil prices on Wednesday, amid concerns over hurdles facing the Organization of the Petroleum Exporting Countries’ planned output cut.
Meanwhile, the greenback remained broadly supported after Friday’s solid U.S. jobs report for November confirmed expectations for an interest rate hike by the Federal Reserve this month.
The loonie was lower against the euro, with EUR/CAD adding 0.17% to 1.4256.