Investing.com - The U.S. dollar was higher against its Canadian counterpart on Thursday, after positive U.S. data added to expectations for a September rate hike by the Federal Reserve and concerns over the devaluation of the Chinese currency eased.
USD/CAD hit 1.3064 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3051, advancing 0.57%.
The pair was likely to find support at 1.2948, Wednesday's low and resistance at 1.3157, Wednesday's high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending August 8 rose by 5,000 to 274,000 from the previous week’s total of 269,000. Analysts had expected initial jobless claims to rise by 1,000 to 270,000 last week.
Separately, the U.S. Commerce Department said that retail sales increased by 0.6% last month, beating expectations for a gain of 0.5%. Retail sales fell by 0.3% in June.
Core retail sales, which exclude automobile sales, rose by 0.4% in July, matching forecasts.
In Canada, data on Thursday showed that new house prices rose 0.3% in June, beating expectations for a 0.1% gain, after an uptick of 0.2% the previous month.
Meanwhile, the turmoil caused by the devaluation of the yuan two days in a row subsided after China's central bank said there was no basis for further depreciation in the currency, given China's strong economic fundamentals.
The yuan has fallen almost 5% against the dollar this week after China devalued its currency in a surprise move on Tuesday in a bid to shore up growth in the flagging economy.
The loonie was steady against the euro, with EUR/CAD at 1.4486.