Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Tuesday after data showed that Canadian wholesale sales fell unexpectedly in March.
USD/CAD hit highs of 1.0906, the strongest since May 14 and was last up 0.25% to 1.0900.
The pair was likely to find support at 1.0849, Monday’s low and resistance at 1.0925, the high of May 13.
The loonie, as the Canadian dollar is also known, weakened after Statistics Canada reported that wholesale sales fell by 0.4% to C$50.5 billion in March.
Market expectations had been for a 0.5% increase after a 1.1% gain in February.
The report said that the motor vehicle and parts subsector recorded the largest decline in March. Excluding this subsector, wholesale sales edged up 0.1% to C$42.3 billion.
Investors were looking ahead to Canadian data on retail sales and inflation later in the week.
Market participants were also looking ahead to the minutes from the Federal Reserve’s latest monetary policy meeting, due for release on Wednesday, as they awaited insight on the central bank's view of the economy.
Recent U.S. economic reports indicating that the recovery remains uneven have weighed on U.S. Treasury yields, pressuring the dollar.
Elsewhere Tuesday, the loonie was lower against the euro, with EUR/CAD up 0.20% to 1.4936.
The euro’s gains were held in check by mounting expectations for monetary easing by the European Central Bank at its next meeting in June and data last week showing that the euro zone economy grew at a slower than forecast rate in the first quarter.