Investing.com – The U.S. dollar fell to a three-day low against its Canadian counterpart on Tuesday, as market sentiment firmed up, while better-than-expected domestic data and higher oil prices also boosted the Canadian dollar.
USD/CAD hit 1.0156 during early U.S. trade, the pair’s lowest since January 5; the pair subsequently consolidated at 1.0167, shedding 0.65%.
The pair was likely to find support at 1.0120, the low of January 5 and resistance at 1.0239, the days high.
Risk appetite was buoyed after an upbeat start to earnings season lifted European equities markets and supported the outlook for the U.S. economic recovery.
Meanwhile, data showed that Canadian housing starts rose more-than-expected in December.
The Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts rose to 200,000 units last month, surpassing expectations for an increase to 188,000 units.
November’s figure was revised up to 186,000 units from a previously reported 181,000.
The broadly weaker greenback helped lift crude oil prices, with crude oil for delivery in February trading at USD102.89 a barrel on the New York Mercantile Exchange, jumping 1.59% on the day.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was also higher against the euro, with EUR/CAD shedding 0.42% to hit 1.3009.
Later Tuesday, German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde were to meet to discuss Greece’s bailout plan.
USD/CAD hit 1.0156 during early U.S. trade, the pair’s lowest since January 5; the pair subsequently consolidated at 1.0167, shedding 0.65%.
The pair was likely to find support at 1.0120, the low of January 5 and resistance at 1.0239, the days high.
Risk appetite was buoyed after an upbeat start to earnings season lifted European equities markets and supported the outlook for the U.S. economic recovery.
Meanwhile, data showed that Canadian housing starts rose more-than-expected in December.
The Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts rose to 200,000 units last month, surpassing expectations for an increase to 188,000 units.
November’s figure was revised up to 186,000 units from a previously reported 181,000.
The broadly weaker greenback helped lift crude oil prices, with crude oil for delivery in February trading at USD102.89 a barrel on the New York Mercantile Exchange, jumping 1.59% on the day.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was also higher against the euro, with EUR/CAD shedding 0.42% to hit 1.3009.
Later Tuesday, German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde were to meet to discuss Greece’s bailout plan.