Investing.com - The U.S. dollar fell to three-week lows against the Canadian dollar on Tuesday as the prospects for U.S. military intervention against Syria dimmed and upbeat Chinese’s data supported risk appetite.
USD/CAD hit 1.0331 during early U.S. trade, the lowest since August 19; the pair subsequently consolidated at 1.0347, down 0.27%.
The pair was likely to find support at 1.0300, the low of August 15 and resistance at 1.0379, the session high.
Investor confidence was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
The Canadian dollar shrugged off a report showing that Canadian housing starts declined slightly more than expected in August, falling to 180,300 units from 193,000 units in July. Economists had forecast a decline to 190,000 units.
Meanwhile, some doubts remained over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18 after the latest U.S. jobs report fell short of expectations.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.3719.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.
USD/CAD hit 1.0331 during early U.S. trade, the lowest since August 19; the pair subsequently consolidated at 1.0347, down 0.27%.
The pair was likely to find support at 1.0300, the low of August 15 and resistance at 1.0379, the session high.
Investor confidence was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
The Canadian dollar shrugged off a report showing that Canadian housing starts declined slightly more than expected in August, falling to 180,300 units from 193,000 units in July. Economists had forecast a decline to 190,000 units.
Meanwhile, some doubts remained over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18 after the latest U.S. jobs report fell short of expectations.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.3719.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.