Investing.com - The U.S. dollar fell to fresh one-month lows against its Canadian counterpart on Monday, after the release of downbeat U.S. manufacturing activity data added to concerns over the strength of the economy following Friday’s weak U.S. reports.
USD/CAD hit 1.2915 during early U.S. trade, the pair’s lowest since July 15; the pair subsequently consolidated at 1.2933, slipping 0.15%.
The pair was likely to find support at 1.2856, the low of July 15 and resistance at 1.2997, Friday’s high.
Data earlier showed that the Empire State manufacturing index fell to -4.2 from July's 0.55. Analysts had expected the index to improve to 2.5.
The report came after the U.S. Commerce Department said on Friday that retail sales were flat in July, compared expectations for a 0.4% rise. Core retail sales, which exclude automobile sales, fell by 0.3% in July.
A separate report showed that U.S. producer prices fell by 0.4% last month, disappointing expectations for a 0.1% rise. Year-over-year, producer prices decreased by 0.2%.
The downbeat data dampened expectations for a 2016 rate hike by the Federal Reserve.
The loonie was steady against the euro, with EUR/CAD at 1.4459.