Investing.com - The U.S. dollar fell to a two-day low against its Canadian counterpart on Thursday, as mixed U.S. economic data added to expectations for further easing measures by the Federal Reserve while higher oil prices supported demand for the loonie.
USD/CAD hit 0.9980 during early U.S. trade, the pair’s lowest since May 8; the pair subsequently consolidated at 0.9982, shedding 0.43%.
The pair was likely to find support at 0.9961, the low of March 29 and resistance at 1.0030, the session high.
The greenback came under pressure as the release of mixed U.S. data failed to reassure investors over the level of the country’s economic recovery, adding to speculation that the Fed may resort to fresh monetary easing in order to boost growth.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.
The previous week’s figure was revised up to 368,000 from 365,000.
Meanwhile, a separate report showed that the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February.
Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.
Data also showed that import prices in the U.S. fell more-than-expected in April, declining 0.5% after a 1.5% the previous month. Analysts had expected import prices to fall 0.1% in April.
Elsewhere, the loonie remained supported as crude oil for delivery in June rose -% on the New York Mercantile Exchange, to trade close at USD97.14.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was also higher against the euro with EUR/CAD falling 0.15%, to hit 1.2943.
Also Thursday, official data showed that Canada’s trade surplus held steady at CAD0.3 billion in March, below expectations for a surplus of CAD1.0 billion.
Later in the day, Fed Chairman Ben Bernanke was due to speak.
USD/CAD hit 0.9980 during early U.S. trade, the pair’s lowest since May 8; the pair subsequently consolidated at 0.9982, shedding 0.43%.
The pair was likely to find support at 0.9961, the low of March 29 and resistance at 1.0030, the session high.
The greenback came under pressure as the release of mixed U.S. data failed to reassure investors over the level of the country’s economic recovery, adding to speculation that the Fed may resort to fresh monetary easing in order to boost growth.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.
The previous week’s figure was revised up to 368,000 from 365,000.
Meanwhile, a separate report showed that the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February.
Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.
Data also showed that import prices in the U.S. fell more-than-expected in April, declining 0.5% after a 1.5% the previous month. Analysts had expected import prices to fall 0.1% in April.
Elsewhere, the loonie remained supported as crude oil for delivery in June rose -% on the New York Mercantile Exchange, to trade close at USD97.14.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was also higher against the euro with EUR/CAD falling 0.15%, to hit 1.2943.
Also Thursday, official data showed that Canada’s trade surplus held steady at CAD0.3 billion in March, below expectations for a surplus of CAD1.0 billion.
Later in the day, Fed Chairman Ben Bernanke was due to speak.