Investing.com – The U.S. dollar extended gains against its Canadian counterpart on Tuesday, rising to hit a 1-month high after official data showed that Canada’s economy contracted more-than-expected in September.
USD/CAD hit 1.0280 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 1.0272, soaring 0.90%.
The pair was likely to find support at 1.0163, Monday’s low and resistance at 1.0301, the high of October 22.
Earlier in the day, Statistics Canada said that Canada’s gross domestic product declined 0.1% in September after rising 0.3% in August. Analysts had expected GDP to rise by 0.1% in September.
The drop in growth was attributed to a decline in exports and lower investment in housing.
The report said that GDP rose at an annualized rate of 0.3% in the third quarter, following a 0.6% gain in the previous quarter, as an increase in the goods-producing industries significantly outpaced that of the services industries for a fourth consecutive quarter.
Meanwhile, the loonie was up against the euro, with EUR/CAD shedding 0.18% to hit 1.3442.
Later Tuesday, the U.S. was to publish industry data on house prices, as well as data on consumer confidence. The country was also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.
USD/CAD hit 1.0280 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 1.0272, soaring 0.90%.
The pair was likely to find support at 1.0163, Monday’s low and resistance at 1.0301, the high of October 22.
Earlier in the day, Statistics Canada said that Canada’s gross domestic product declined 0.1% in September after rising 0.3% in August. Analysts had expected GDP to rise by 0.1% in September.
The drop in growth was attributed to a decline in exports and lower investment in housing.
The report said that GDP rose at an annualized rate of 0.3% in the third quarter, following a 0.6% gain in the previous quarter, as an increase in the goods-producing industries significantly outpaced that of the services industries for a fourth consecutive quarter.
Meanwhile, the loonie was up against the euro, with EUR/CAD shedding 0.18% to hit 1.3442.
Later Tuesday, the U.S. was to publish industry data on house prices, as well as data on consumer confidence. The country was also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.