Investing.com - The U.S. dollar erased gains and fell to a session low against the Canadian dollar on Tuesday, following official data showing that Canadian retail sales rose significantly more-than-expected in July.
USD/CAD hit 0.9764 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9777, slipping 0.10%.
The pair was likely to find near-term support at 0.9730, Friday's low and resistance at 0.9816, Monday's high.
The Canadian dollar firmed up after Statistics Canada said retail sales rose 0.7% in July, outstripping expectations for a 0.3% increase, while core retail sales, which exclude automobile sales, rose 0.4%, surpassing expectations for a 0.3% increase.
In the U.S., data released by Standard & Poor’s and Case-Shiller showed that house price inflation rose more-than-expected in July from a year earlier.
The S&P/CS House Price Index rose to a seasonally adjusted annual rate of 1.2% in July, the biggest 12-month advance since August 2010, compared to expectations for a 1.0% increase.
Demand for the greenback continued to be underpinned by uncertainty over the ongoing debt crisis in the euro zone.
Spain saw borrowing costs rise at an auction of short-term debt earlier, reflecting lingering uncertainty over whether Madrid will request a full scale sovereign bailout.
Investors also remained cautious following German media reports that lawyers for Germany's central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up .02% to 1.2657.
Later in the session the U.S. was to produce a closely watched report on consumer confidence.
USD/CAD hit 0.9764 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9777, slipping 0.10%.
The pair was likely to find near-term support at 0.9730, Friday's low and resistance at 0.9816, Monday's high.
The Canadian dollar firmed up after Statistics Canada said retail sales rose 0.7% in July, outstripping expectations for a 0.3% increase, while core retail sales, which exclude automobile sales, rose 0.4%, surpassing expectations for a 0.3% increase.
In the U.S., data released by Standard & Poor’s and Case-Shiller showed that house price inflation rose more-than-expected in July from a year earlier.
The S&P/CS House Price Index rose to a seasonally adjusted annual rate of 1.2% in July, the biggest 12-month advance since August 2010, compared to expectations for a 1.0% increase.
Demand for the greenback continued to be underpinned by uncertainty over the ongoing debt crisis in the euro zone.
Spain saw borrowing costs rise at an auction of short-term debt earlier, reflecting lingering uncertainty over whether Madrid will request a full scale sovereign bailout.
Investors also remained cautious following German media reports that lawyers for Germany's central bank are examining the legality of the European Central Bank's bond purchasing program, setting the stage for a possible legal challenge.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up .02% to 1.2657.
Later in the session the U.S. was to produce a closely watched report on consumer confidence.