Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Tuesday as upbeat global manufacturing data supported the outlook for a broad based recovery, bolstering market sentiment.
USD/CAD hit 1.0510 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0517, shedding 0.31%.
The pair was likely to find support at 1.0478, Friday’s low and resistance at 1.0558, the session high.
Risk appetite was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August, while a separate report showed that manufacturing activity in the U.K. jumped to a 30-month high.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
The greenback’s losses were held in check by expectations that the Federal Reserve will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.47% to 1.3858.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.
USD/CAD hit 1.0510 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0517, shedding 0.31%.
The pair was likely to find support at 1.0478, Friday’s low and resistance at 1.0558, the session high.
Risk appetite was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August, while a separate report showed that manufacturing activity in the U.K. jumped to a 30-month high.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
The greenback’s losses were held in check by expectations that the Federal Reserve will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.47% to 1.3858.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.