Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Thursday after data showed that the Canadian economy expanded at a faster than expected rate in August.
USD/CAD hit 1.0435 during early U.S. trade, the lowest since Tuesday; the pair subsequently consolidated at 1.0440, shedding 0.36%.
The pair was likely to find support at 1.0426, the low of October 29 and resistance at 1.0488, the session high.
Statistics Canada said gross domestic product expanded 0.3% in August, above expectations for growth of 0.2%. Canada’s economy grew by 0.6% in July.
Canadian GDP grew 2% on a yearly basis, beating forecasts for an increase of 1.7%, following annualized growth of 1.5% in July.
The greenback remained supported after the Federal Reserve was more optimistic than anticipated in its assessment of the economy at its monthly meeting on Wednesday, fuelling speculation that it could start scaling back stimulus sooner than expected.
The Fed left its USD85 billion-a-month asset purchase program in place and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.
Meanwhile, data on Thursday showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply higher against the euro, with EUR/CAD dropping 0.93% to 1.4256.
The euro weakened broadly after data showing that inflation in the euro zone declined to the lowest level in four years in October fuelled fears that the European Central Bank may tighten monetary policy.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.
USD/CAD hit 1.0435 during early U.S. trade, the lowest since Tuesday; the pair subsequently consolidated at 1.0440, shedding 0.36%.
The pair was likely to find support at 1.0426, the low of October 29 and resistance at 1.0488, the session high.
Statistics Canada said gross domestic product expanded 0.3% in August, above expectations for growth of 0.2%. Canada’s economy grew by 0.6% in July.
Canadian GDP grew 2% on a yearly basis, beating forecasts for an increase of 1.7%, following annualized growth of 1.5% in July.
The greenback remained supported after the Federal Reserve was more optimistic than anticipated in its assessment of the economy at its monthly meeting on Wednesday, fuelling speculation that it could start scaling back stimulus sooner than expected.
The Fed left its USD85 billion-a-month asset purchase program in place and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.
Meanwhile, data on Thursday showed that U.S. initial jobless claims fell in line with expectations last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply higher against the euro, with EUR/CAD dropping 0.93% to 1.4256.
The euro weakened broadly after data showing that inflation in the euro zone declined to the lowest level in four years in October fuelled fears that the European Central Bank may tighten monetary policy.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September.