Investing.com - The U.S. dollar was lower against its Canadian counterpart on Friday, as disappointing U.S. economic growth data pressure the greenback broadly lower, although a weak Canadian report also weighed on demand for the loonie.
USD/CAD hit 1.1080 during European afternoon trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.1086, sliding 0.33%.
The pair was likely to find support at 1.1003, the low of November 2 and resistance at 1.1196, the high of February 21.
Preliminary data showed that the U.S. gross domestic product rose 2.4% in the fourth quarter, slightly below expectations for a 2.5% expansion, after a 3.2% increase in the three months to September.
The report fuelled fresh concerns over the strength of the U.S. economic recovery, even as Federal Reserve Chair Janet Yellen on Thursday said the central bank will probably continue tapering its asset purchases while tracking data to figure how much recent softness in the economy is due to the weather.
Meanwhile, the loonie came under pressure after official data showed that Canada's GDP fell 0.5% in December, compared to expectations for a 0.2% contraction, after a 0.2% expansion the previous month.
The loonie was lower against the euro, with EUR/CAD advancing 0.43% to 1.5316.
The single currency strengthened after preliminary data showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 0.8% in February, compared for expectations for a downtick to 0.7%.
A separate report showed that the unemployment rate in the single currency bloc remained unchanged at 12% in January, in line with expectations.
The positive data eased speculation that the European Central Bank could cut interest rates at its policy meeting next week.
Later in the day, the U.S. was to release a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.