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Forex - USD/CAD erases gains after U.S. data disappoints

Published 10/17/2016, 09:33 AM
Greenback turns lower vs. loonie in early trade
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Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Monday, after downbeat U.S. data and as higher oil prices lent support to the commodity-related Canadian dollar.

USD/CAD pulled back from 1.3183, the session high, to hit 1.3125 during early U.S. trade, down 0.08%

The pair was likely to find support at 1.3064, the low of October 3 and resistance at 1.3221, the high of October 14.

The Federal Reserve of New York said its Empire State manufacturing index fell to -6.80 in October from -1.99 the previous month. Analysts had expected the index to rise to 1.00 this month.

A separate report showed that U.S. industrial production increased by 0.1% last month, below expectations for a gain of 0.2%.

However, manufacturing production increased by 0.2% last month, compared to forecasts for a 0.1% rise.

Meanwhile, the Canadian dollar was lifted by rising oil prices, as investors continued to eye the details of a planned output cut by the Organization of the Petroleum Exporting Countries.

In addition, Statistics Canada reported on Monday that foreign securities purchases rose by C$12.74 billion in August, after an increase of C$9.10 billion the previous month, whose figure was revised from a previously estimated C$5.23 billion rise.

Analysts had expected foreign securities purchases to increase by C$6.24 billion in August.

The loonie was lower against the euro, with EUR/CAD adding 0.16% to 1.4440.

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