Forex - USD/CAD hits fresh daily high after Canadian CPI data

Published 09/21/2010, 07:16 AM
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Investing.com – The U.S. dollar surged to a fresh daily high against its Canadian counterpart on Tuesday, after official data showed that Canadian core consumer price inflation rose in line with expectations in August.

USD/CAD hit 1.0327 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.0310, gaining 0.25%.

The pair was likely to find support at 1.0260, Monday's low and resistance at 1.0373, the high of September 10.

Earlier in the day, Statistics Canada said that core CPI rose by a seasonally adjusted 0.1% in August, in line with expectations, after declining by 0.1% in July.

CPI fell by 0.1% in August, after increasing by 0.5% in July. Analysts had expected CPI to be flat in August.

The report said that consumer prices rose at an annualized rate of 1.7% in August, following a 1.8% rise in July.

The loonie was also down against the euro, with EUR/CAD gaining 0.77% to hit 1.3534.

Later in the day, the U.S. was to release official data on building permits and housing starts, while the Federal Reserve was to announce its benchmark interest rate.

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