Investing.com - The Canadian dollar fell against its U.S. counterpart on Tuesday, taking a breather after posting gains buoyed by higher prices of oil, a key Canadian export, and also on hopes for an improving economy in the U.S., a key Canadian export market.
USD/CAD hit 1.0097 in Asian trading on Tuesday, up 0.10%, up from a session low of 1.0072 and off from a high of 1.0095.
The pair sought to test support at 1.0053. Monday's low, and resistance at 1.0157, Monday's high.
On Monday, Canada's leading economic indicators rose 0.8% in December, outpacing market expectations for a 0.6% gain, which was bullish for the Canadian currency.
"The Canadian dollar is benefiting from tentative signs of cyclical rebound in global economic growth," said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd., according to Bloomberg.
"While it is still too early to give the 'all-clear,' given downside risks to growth still out there, the market appears to be prepared to give it the benefit of the doubt."
Oil prices rose earlier on Monday when European nations agree to ban crude imports from Iran, accusing the Middle East country for allegedly developing a nuclear program.
The Canadian dollar, meanwhile, was up against the euro as well as the pound, with EUR/CAD falling 0.07% to 1.3117 and GBP/CAD dipping 0.04% at 1.5696.
Later Tuesday in Canada, core retail sales figures will hit the wire while in the U.K., Bank of England Governor Mervyn King is due to speak.
The U.S. Federal Open Market Committee begins a two-day meeting to discuss monetary policy and may hint at further loose monetary policies, including quantitative easing.
Investors are awaiting eurozone preliminary manufacturing and service sector data as well as the Bank of Japan's interest rate statement and press conference.
USD/CAD hit 1.0097 in Asian trading on Tuesday, up 0.10%, up from a session low of 1.0072 and off from a high of 1.0095.
The pair sought to test support at 1.0053. Monday's low, and resistance at 1.0157, Monday's high.
On Monday, Canada's leading economic indicators rose 0.8% in December, outpacing market expectations for a 0.6% gain, which was bullish for the Canadian currency.
"The Canadian dollar is benefiting from tentative signs of cyclical rebound in global economic growth," said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd., according to Bloomberg.
"While it is still too early to give the 'all-clear,' given downside risks to growth still out there, the market appears to be prepared to give it the benefit of the doubt."
Oil prices rose earlier on Monday when European nations agree to ban crude imports from Iran, accusing the Middle East country for allegedly developing a nuclear program.
The Canadian dollar, meanwhile, was up against the euro as well as the pound, with EUR/CAD falling 0.07% to 1.3117 and GBP/CAD dipping 0.04% at 1.5696.
Later Tuesday in Canada, core retail sales figures will hit the wire while in the U.K., Bank of England Governor Mervyn King is due to speak.
The U.S. Federal Open Market Committee begins a two-day meeting to discuss monetary policy and may hint at further loose monetary policies, including quantitative easing.
Investors are awaiting eurozone preliminary manufacturing and service sector data as well as the Bank of Japan's interest rate statement and press conference.