Investing.com - The U.S. dollar remained near seven-week lows against its Canadian counterpart on Tuesday, despite the release of disappointing Canadian building permits data as Friday's U.S. nonfarm payrolls report continued to weigh on demand for the greenback.
USD/CAD hit 1.0917 during European afternoon trade, the pair's lowest since February 19; the pair subsequently consolidated at 1.0934, shedding 0.35%.
The pair was likely to find support at 1.0879, the low of January 14 and resistance at 1.1036, the high of April 4.
Official data showed that building permits in Canada dropped by 11.6% in February, compared to expectations for a 3% decline. Building permits in January were revised to a 8.1% increase, from a previously estimated 8.5% rise.
A separate report showed that the annualized rate of Canadian housing starts fell to 156,823 units in March, from a downwardly revised 190,639 in February, below economists' forecast for 191,000.
Meanwhile, sentiment on the greenback still remained vulnerable after last week’s U.S. payrolls report disappointed some market expectations for a stronger number.
Investors were eyeing Wednesday’s minutes of the Federal Reserve’s March meeting for further indications on the future direction of monetary policy.
The loonie was little changed against the euro, with EUR/CAD dipping 0.02% to 1.5076.
The single currency remained supported after comments by European Central Bank officials on Monday tempered expectations for quantitative easing.
ECB governing council member Yves Mersch said there is no immediate risk of deflation in the euro zone and therefore no urgent need to implement large-scale bond purchases.
Separately, Bundesbank president Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to keep reforming their economies.