Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Friday, as upbeat Canadian manufacturing sales data boosted the nation's currency, although a strong U.S. retail sales report limited the greenback's losses.
USD/CAD hit 1.1357 during early U.S. trade, the session low; the pair subsequently consolidated at 1.1347, slipping 0.18%.
The pair was likely to find support at 1.1277, Wednesday's low and resistance at 1.1448, the high of November 7.
In a report, Statistics Canada said manufacturing sales rose by 2.1% in September, beating expectations for an increase of 1.3%. August's figure was revised to a 3.5% decline from a previously estimated 3.3% drop.
Meanwhile, official data showed that U.S. retail sales rose 0.3% last month, exceeding expectations for a 0.2% gain, after a 0.3% fall in September.
Core retail sales, which exclude automobiles, increased by 0.3% in October, compared to expectations for a 0.2% slip the previous month.
The greenback also remained supported by the diverging monetary policy outlook between the Federal Reserve and it's major peers.
The loonie was higher against the euro, with EUR/CAD declining 0.63% to 1.4095.
In the euro zone, data showed that inflation was flat in October, in line with market expectations, after a 0.4% rise in September.
The bloc's annual rate of inflation remained unchanged at 0.4% last month.
Core CPI in the euro zone, which excludes food, energy, alcohol and tobacco, ticked down to an annual rate of 0.7% last month from 0.8% in September.
The data fuelled further concerns over persistently low levels of inflation in the euro area. The European Central Bank targets an inflation rate of close to, but just below 2%.
A separate report showed that the euro zone's gross domestic product rose 0.2% in the third quarter, more than the expected 0.1% uptick. The bloc's economy expanded at an annual rate of 0.8% in the last quarter, compared to expectations for 0.7% growth.