Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Tuesday, after the release of lower-than-expected U.S. inflation data, as investors awaited the outcome of the Federal Reserve's two-day policy meeting.
USD/CAD hit 1.0576 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0588, easing 0.07%.
The pair was likely to find support at 1.0532, the low of November 27 and resistance at 1.0656, the high of December 12.
The Department of Labor said consumer prices were flat in November after falling 0.1% in October.
The annual rate of inflation rose 1.2% last month, undershooting expectations for an increase of 1.3%, but was up from a four year low of 1.0% in October.
In Canada, data showed that manufacturing sales rose 1.0% in October, defying expectations for a 0.2% decline.
Market sentiment remained subdued ahead of the outcome of the Federal Reserve’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
The loonie was higher against the euro, with EUR/CAD slipping 0.10% to 1.4562.
In the euro zone, a report showed that the ZEW index of German economic sentiment rose to 62.0 in December from November’s reading of 54.6. It was the highest level since April 2006. Economists had expected the index to tick up to 55.0 this month.
The data came one day after a report showed that manufacturing activity in Germany rose to a 30 month high in November, bolstering the outlook for the recovery in the euro zone.
USD/CAD hit 1.0576 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0588, easing 0.07%.
The pair was likely to find support at 1.0532, the low of November 27 and resistance at 1.0656, the high of December 12.
The Department of Labor said consumer prices were flat in November after falling 0.1% in October.
The annual rate of inflation rose 1.2% last month, undershooting expectations for an increase of 1.3%, but was up from a four year low of 1.0% in October.
In Canada, data showed that manufacturing sales rose 1.0% in October, defying expectations for a 0.2% decline.
Market sentiment remained subdued ahead of the outcome of the Federal Reserve’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
The loonie was higher against the euro, with EUR/CAD slipping 0.10% to 1.4562.
In the euro zone, a report showed that the ZEW index of German economic sentiment rose to 62.0 in December from November’s reading of 54.6. It was the highest level since April 2006. Economists had expected the index to tick up to 55.0 this month.
The data came one day after a report showed that manufacturing activity in Germany rose to a 30 month high in November, bolstering the outlook for the recovery in the euro zone.