Investing.com - The U.S. dollar rose to one week highs against the Canadian dollar on Tuesday after data showed that the U.S. trade deficit shrank to the lowest level since October 2009 in November, while Canada’s trade deficit widened unexpectedly.
USD/CAD hit highs of 1.0718, the strongest level since December 30 and was last up 0.54% to 1.0712.
The pair is likely to find support at 1.0650, the session low and resistance at 1.0736, the three and-a-half year high struck on December 20.
The greenback was boosted after the Commerce Department said Tuesday the U.S. trade deficit narrowed to USD34.25 billion in November from a revised deficit of USD39.33 billion in the previous month.
Economists had expected the U.S. trade deficit to widen to USD40 billion.
U.S. exports rose 0.9% to a record high of USD194.9 billion, while imports fell 1.4% to USD229.1 billion.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in Fed stimulus.
Meanwhile, in Canada official data showed that the trade deficit widened to CAD0.94 billion in November from CAD0.91 billion in October. Analysts had expected the deficit to shrink to CAD0.15 billion.
Statistics Canada said exports were unchanged from the previous month at CAD39.78 billion, while imports edged up 0.1% to CAD40.72 billion.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.55% to 1.4602.
In the euro zone, data released on Tuesday showed that the annual rate of inflation slowed to 0.8% in December from 0.9% the previous month, adding to concerns over the risk of deflation in the currency bloc.
USD/CAD hit highs of 1.0718, the strongest level since December 30 and was last up 0.54% to 1.0712.
The pair is likely to find support at 1.0650, the session low and resistance at 1.0736, the three and-a-half year high struck on December 20.
The greenback was boosted after the Commerce Department said Tuesday the U.S. trade deficit narrowed to USD34.25 billion in November from a revised deficit of USD39.33 billion in the previous month.
Economists had expected the U.S. trade deficit to widen to USD40 billion.
U.S. exports rose 0.9% to a record high of USD194.9 billion, while imports fell 1.4% to USD229.1 billion.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in Fed stimulus.
Meanwhile, in Canada official data showed that the trade deficit widened to CAD0.94 billion in November from CAD0.91 billion in October. Analysts had expected the deficit to shrink to CAD0.15 billion.
Statistics Canada said exports were unchanged from the previous month at CAD39.78 billion, while imports edged up 0.1% to CAD40.72 billion.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.55% to 1.4602.
In the euro zone, data released on Tuesday showed that the annual rate of inflation slowed to 0.8% in December from 0.9% the previous month, adding to concerns over the risk of deflation in the currency bloc.