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Forex - USD/CAD hits session lows ahead of Fed minutes

Published 11/20/2013, 09:35 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Wednesday after mixed U.S. data, as investors awaited the minutes of the Federal Reserve’s October meeting later in the session.

USD/CAD was down 0.18% to 1.0450 during early U.S. trade, from Tuesday’s close of 1.0468.

The pair was likely to find support at 1.0414, Tuesday’s low and resistance at 1.0484, Tuesday’s high.

The Commerce Department said U.S. retail sales rose 0.4% in October, beating expectations for a 0.1% increase. Core retail sales were up 0.2%, above expectations for a 0.1% rise.

A separate report showed that U.S. consumer prices fell for the first time in six months in October, declining 0.1%.

The greenback remained under pressure after Fed Chairman Ben Bernanke reiterated the bank’s commitment to highly accommodative monetary policy on Tuesday and said the Fed would only taper its USD85 billion-a-month asset purchase program when it was assured of a sustained recovery in the labor market.

Interest rates will probably remain near zero for a “considerable time” after the bank winds up the stimulus program, he added.

The Fed minutes were expected to reveal more details on the bank’s decision to stick with the stimulus program last month.

The loonie, as the Canadian dollar is also known, shrugged off data showing that Canadian wholesale sales rose less-than-expected in September.

Statistics Canada said wholesale sales rose 0.2% after a downwardly revised 0.4% gain in August, falling short of expectations for a 1% increase.

Elsewhere, the loonie was higher against the euro, with EUR/CAD down 0.17% to 1.4147.

The U.S. was to release data on existing home sales later Wednesday.





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