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Forex - USD/CAD moves lower in early trade

Published 04/27/2015, 09:26 AM
© Reuters.  Greenback slides lower vs. loonie as U.S. data still weighs
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EUR/CAD
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Investing.com - The U.S. dollar was lower against its Canadian counterpart on Monday, as Friday's disappointing U.S. economic data dampened optimism over the strength of the country's recovery, weighing broadly on the greenback.

USD/CAD hit 1.2150 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2131, sliding 0.38%.

The pair was likely to find support at 1.2084, the low of April 17 and a three-month low and resistance at 1.2271, the high of April 23.

The dollar remained under pressure after the Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data led investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.

The loonie was higher against the euro, with EUR/CAD retreating 0.51% to 1.3174.

Sentiment on the single currency remained vulnerable after euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.

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