Investing.com - The U.S. dollar fell to three-week lows against its Canadian counterpart on Wednesday, as sentiment on the greenback remained fragile ahead of the Federal Reserve's policy statement.
USD/CAD hit 1.1142 during early U.S. trade, the pair's lowest since October 9; the pair subsequently consolidated at 1.1134, shedding 0.30%.
The pair was likely to find support at 1.1077, the low of October 9 and resistance at 1.1222, the high of October 13.
The Fed was widely expected to announce the conclusion of its asset purchasing stimulus program, known as quantitative easing, at the conclusion of its two day policy meeting later Wednesday.
However, the U.S. central bank was also expected to reassure markets that interest rates will remain on hold for some time to come amid concerns that slowing growth in Europe and China may act as a drag on the U.S. economy.
The greenback was hit on Tuesday after a report showed that U.S. orders for long lasting manufactured goods were unexpectedly lower for the second successive month in September.
But the U.S. dollar trimmed losses after another report showed that U.S. consumer confidence jumped to the highest level in seven years this month.
In Canada, official data on Wednesday showed that raw materials prices dropped 1.9% last month, confounding expectations for a 1.0% decline, after a 2.2% fall in August.
Year-on-year, Canada's raw materials prices slipped 0.9% in September, following a 0.6% decline the previous month.
The loonie was higher against the euro, with EUR/CAD slipping 0.27% to 1.4183.