Investing.com - The U.S. dollar pared losses and continued to hover near nine-month highs against its Canadian counterpart on Tuesday, supported by the release of upbeat U.S. economic reports and as an ongoing decline in oil prices weighed on demand for the Canadian currency.
USD/CAD eased off 1.3489, the session low, to hit 1.3527 during early U.S. trade, still down 0.26%.
The pair was likely to find support at 1.3420, Friday’s low and resistance at 1.3589, Monday’s high and a nine-month peak.
The U.S. Commerce Department said retail sales rose 0.8% in October, compared to expectations for a 0.6% increase.
Core retail sales, which exclude automobile sales, increased by 0.8% last month, compared to forecasts for an advance of 0.5%.
In addition, the Federal Reserve of New York said its Empire State manufacturing index climbed to 1.50 in November from -6.80 the previous month. Analysts had expected to improve to -2.50 this month.
The dollar also remained broadly supported amid hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.
Meanwhile, the Canadian dollar remained under pressure as oil prices continued to decline amid global supply glut concerns.
The loonie was higher against the euro, with EUR/CAD shedding 0.29% to 1.4516.