Investing.com - The U.S. dollar held steady against its Canadian counterpart on Monday, hovering close to a six month peak as upbeat U.S. personal spending data added to the feeling that the economic recovery is likely to continue in the current quarter.
USD/CAD hit six month highs of 1.1178 earlier in the day and was last trading at 1.1154.
The pair was likely to find support at 1.1088, Friday's low and resistance at 1.1278.
In a report, the Commerce Department said that U.S. personal spending rose 0.5% in August, beating expectations for an increase of 0.4%, after a 0.1% dip in July.
Meanwhile, personal income, reflecting income from wages, investment, and government aid, rose 0.3%, up from 0.2% in July, broadly in line with forecasts.
Demand for the dollar continued to be underpinned after data on Friday showed that the U.S. economy grew at an annual rate of 4.6% in the second quarter, the fastest pace in two-and-a-half years.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner.
In contrast, the Bank of Japan and the European Central Bank look likely to stick to a loose monetary policy stance amid concerns over faltering economic growth.
Investors were also looking ahead to economic data from the U.S., with Friday’s nonfarm payrolls report sharply in focus after August’s report fell short of expectations.
The loonie was lower against the euro, with EUR/CAD edging up 0.13% to 1.4169.
Later in the day, the U.S. was to release a private sector report on pending home sales.