Investing.com - The U.S. dollar was higher against its Canadian counterpart on Monday, trading close to a more than 11-year peak as concerns over Chinese growth and tensions in the Middle East dampened risk sentiment.
USD/CAD hit 1.3940 during early U.S. trade, the pair’s highest since December 29; the pair subsequently consolidated at 1.3905, gaining 0.49%.
The pair was likely to find support at 1.3833, the low of January 1 and resistance at 1.3967, the high of December 22.
Data earlier showed that China’s Caixin manufacturing purchasing managers' index fell to 48.2 this month from 48.6 in December, confounding expectations for a rise to 48.9.
It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction. The downbeat data added to concerns over slowdown in the world’s second biggest economy.
Markets sentiment also weakened amid concerns over growing tensions in the Middle East after Saudi Arabia cut diplomatic ties with Iran over the weekend.
The move followed a weekend storming of the Saudi embassy in Tehran in response to the kingdom's execution of a prominent Shiite cleric.
The loonie was sharply lower against the euro, with EUR/CAD advancing 0.49% to 1.5092.