Investing.com - The U.S. dollar erased gains against its Canadian counterpart on Thursday, pulling back from an almost four-month high as disappointing U.S. manufacturing data underlined concerns over the outlook for the country’s economic recovery.
USD/CAD retreated from 1.0283, the session high, to hit 1.0249 during early U.S. trade, dipping 0.02%.
The pair was likely to find support at 1.0202, Wednesday’s low and resistance at 1.0294, Wednesday’s high and a four-month high.
The Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
But demand for the safe haven greenback remained supported after dismal euro zone economic data earlier in the day sparked fresh concerns over the impact of the crisis on the region’s economy.
Market sentiment weakened after a report showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
The Canadian dollar also found support from rising crude oil prices, as crude oil for delivery in July climbed 0.87% on the New York Mercantile Exchange, to trade at USD90.69 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is sometimes known, was marginally higher against the euro, with EUR/CAD dipping 0.06% to hit 1.2891.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.
USD/CAD retreated from 1.0283, the session high, to hit 1.0249 during early U.S. trade, dipping 0.02%.
The pair was likely to find support at 1.0202, Wednesday’s low and resistance at 1.0294, Wednesday’s high and a four-month high.
The Commerce Department said U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
But demand for the safe haven greenback remained supported after dismal euro zone economic data earlier in the day sparked fresh concerns over the impact of the crisis on the region’s economy.
Market sentiment weakened after a report showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
The Canadian dollar also found support from rising crude oil prices, as crude oil for delivery in July climbed 0.87% on the New York Mercantile Exchange, to trade at USD90.69 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is sometimes known, was marginally higher against the euro, with EUR/CAD dipping 0.06% to hit 1.2891.
Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell to a seasonally adjusted 370,000, in line with expectations.