Investing.com – The U.S. dollar held on to gains against its Canadian counterpart on Wednesday, following the release of lackluster data on U.S. retail sales and wholesales prices, while easing concerns over the debt crisis in the euro zone helped limit losses.
USD/CAD hit 0.9937 during U.S. morning trade, the daily high; the pair subsequently consolidated at 0.9907, gaining 0.5%.
The pair was likely to find support at 0.9829, the low of September 8 and resistance at 1.0026, the high of September 12 and an eight-month high.
The U.S. Census Bureau said earlier that retail sales in the U.S. unexpectedly stagnated in August, confounding expectations for a 0.2% gain, as high unemployment and the debt ceiling debate prompted investors to spend less.
Core retail sales, which exclude automobile sales, rose 0.1%, below expectations for a 0.2% gain.
A separate report showed that producer price inflation in the U.S. was flat in August, broadly in line with expectations, as lower oil prices offset rising food costs.
Wholesale prices excluding food and energy costs rose 0.1% in August after rising by 0.4% in the preceding month. Analysts had expected core PPI to rise by 0.2%.
The loonie came under pressure after crude oil for delivery in October pulled back from a six-week high to trade at USD89.67 a barrel on the New York Mercantile Exchange, down 0.6% on the day.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was also down against the euro, with EUR/CAD jumping 0.77% to hit 1.3586.
The single currency was boosted after European Commission President Jose Manuel Barroso said that the commission would soon present options for the introduction of euro area bonds.
Later in the day, the U.S. was to release government data on business inventories as well as a report on crude oil stockpiles, which can be a big market mover for the loonie, due to the size of Canada’s energy sector.
USD/CAD hit 0.9937 during U.S. morning trade, the daily high; the pair subsequently consolidated at 0.9907, gaining 0.5%.
The pair was likely to find support at 0.9829, the low of September 8 and resistance at 1.0026, the high of September 12 and an eight-month high.
The U.S. Census Bureau said earlier that retail sales in the U.S. unexpectedly stagnated in August, confounding expectations for a 0.2% gain, as high unemployment and the debt ceiling debate prompted investors to spend less.
Core retail sales, which exclude automobile sales, rose 0.1%, below expectations for a 0.2% gain.
A separate report showed that producer price inflation in the U.S. was flat in August, broadly in line with expectations, as lower oil prices offset rising food costs.
Wholesale prices excluding food and energy costs rose 0.1% in August after rising by 0.4% in the preceding month. Analysts had expected core PPI to rise by 0.2%.
The loonie came under pressure after crude oil for delivery in October pulled back from a six-week high to trade at USD89.67 a barrel on the New York Mercantile Exchange, down 0.6% on the day.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was also down against the euro, with EUR/CAD jumping 0.77% to hit 1.3586.
The single currency was boosted after European Commission President Jose Manuel Barroso said that the commission would soon present options for the introduction of euro area bonds.
Later in the day, the U.S. was to release government data on business inventories as well as a report on crude oil stockpiles, which can be a big market mover for the loonie, due to the size of Canada’s energy sector.