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Forex - USD/CAD little changed after weak Canada, U.S. data

Published 11/15/2013, 09:27 AM
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Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Friday, as a disappointing report on manufacturing activity in the New York area weighed on the greenback, while lower-than-expected manufacturing sales data from Canada limited the loonie's gains.

USD/CAD hit 1.0452 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0470, easing up 0.03%.

The pair was likely to find support at 1.0406, the low of November 7 and resistance at 1.0526, Thursday's high and a two-month high.

In a report, the Federal Reserve of New York said its maufacturing activity index declined to minus 2.2 in November, from a reading of 1.5 the previous month, confounding expectations for a rise to 5.

A separate report showed that U.S. import prices fell 0.7% in October, compared to expectations for a 0.4% downtick, after a downwardly revised 0.1% rise the previous month.

In addition, official data showed that industrial production in the U.S. ticked down 0.1% in October, disappointing expectations for a 0.2% rise, after an upwardly revised 0.7% increase in September.

The data came after Federal Reserve Chair nominee Janet Yellen on Thursday defended the central bank's stimulus measures to bolster growth and called efforts to boost hiring an "imperative".

Answering questions before the Senate Banking Committee, Yellen said she would press forward with the central bank's ultra-easy monetary policy until officials were confident a durable economic recovery was in place that could sustain job creation.

The comments added to expectations that the Fed's monthly bond purchases may remained unchanged for an extended period of time.

Meanwhile, Statistics Canada said manufacturing sales rose 0.6% in September, less than the expected 1% increase, after a 0.2% decline the previous month.

The loonie was lower against the euro with EUR/CAD rising 0.30%, to hit 1.4128.

In the euro zone, official data showed that consumer price inflation remained unchanged in October at an annualized rate of 0.7%, in line with expectations.

Core consumer price inflation, which excludes food, energy, alcohol, and tobacco, ticked down to 0.8% from a year earlier, from an upwardly revised rate of 1% in September, in line with market expectations.

Later in the day, the U.S. was to release data on industrial production.


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