Investing.com - The U.S. dollar fell to fresh three-month lows against its Canadian counterpart on Wednesday, after data showed that the U.S. economy grew less than expected in the last quarter and as markets eyed the Federal Reserve's upcoming policy statement.
USD/CAD hit 1.1994 during early U.S. trade, the pair's lowest since January 20; the pair subsequently consolidated at 1.2006, shedding 0.21%.
The pair was likely to find support at 1.1031, the low of January 20 and resistance at 1.2118, Tuesday's high.
The Commerce Department reported that the U.S. gross domestic product grew at an annual rate of 0.2% in the three months to March, below expectations for growth of 1%. The U.S. economy expanded by 2.2% in the previous quarter.
The report added to a recent string of disappointing data which has prompted investors to scale back expectations on the timing of a first rate hike by the U.S. central bank.
Investors were now looking ahead to a report on pending home sales later in the day for further indications on the strength of the recovery, ahead of the Fed's policy announcement.
In Canada, data on Wednesday showed that raw materials prices fell 0.9% last month, compared to expectations for a 1.8% decline. March's figure was revised to a 5.9% rise from a previously estimated increase of 6.1%.
The loonie was lower against the euro, with EUR/CAD rising 0.34% to 1.3258.
In the euro zone, data showed that German consumer price inflation accelerated at an annualized rate of 0.4% this month, meeting forecasts and compared to a reading of 0.3% in March.
Month-over-month, German consumer prices dipped 0.1% in April, also in line with expectations, after climbing 0.5% in the preceding month.