Investing.com – The U.S. dollar edged lower against its Canadian counterpart on Tuesday, despite an unexpected interest rate hike by the People’s Bank of China and a dip in oil prices.
USD/CAD hit 0.9648 during early U.S. trade, the daily low; the pair subsequently consolidated at 0.9653, slipping 0.16%.
The pair was likely to find support at 0.9414, Monday’s low and a multi-year low and resistance at 0.9705, Friday’s high.
Earlier in the day, China’s central bank lifted its base lending and deposit rates by a quarter-point, hiking rates for the second time this year in an attempt to curb escalating inflation.
Meanwhile, oil prices dipped but held near 2-1/2 year highs, with Brent crude trading close to USD121 a barrel amid ongoing unrest in the key oil-exporting regions of the Middle East and Africa.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major exporter of the commodity.
The loonie was also up against the euro, with EUR/CAD shedding 0.59% to hit 1.3666.
Later Tuesday, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.
USD/CAD hit 0.9648 during early U.S. trade, the daily low; the pair subsequently consolidated at 0.9653, slipping 0.16%.
The pair was likely to find support at 0.9414, Monday’s low and a multi-year low and resistance at 0.9705, Friday’s high.
Earlier in the day, China’s central bank lifted its base lending and deposit rates by a quarter-point, hiking rates for the second time this year in an attempt to curb escalating inflation.
Meanwhile, oil prices dipped but held near 2-1/2 year highs, with Brent crude trading close to USD121 a barrel amid ongoing unrest in the key oil-exporting regions of the Middle East and Africa.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major exporter of the commodity.
The loonie was also up against the euro, with EUR/CAD shedding 0.59% to hit 1.3666.
Later Tuesday, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.