Investing.com - The U.S. dollar pulled away from five-year highs against its Canadian counterpart on Wednesday, as the release of disappointing economic reports from the U.S. sent the greenback broadly lower.
USD/CAD pulled away from 1.1385, the pair's highest since July 2009, to hit 1.1279 during early U.S. trade, down 0.16%.
The pair was likely to find support at 1.1184, Tuesday's low and resistance at 1.1385, the session high.
The greenback weakened broadly after official data showed that U.S. retail sales fell 0.3% last month, more than the expected 0.1% slip, after an increase of 0.6% in August.
Core retail sales, which exclude automobiles, dropped 0.2% in September, confounding expectations for a 0.3% gain, after a 0.3% rise the previous month.
A separate report showed that U.S. producer price inflation slipped 0.1% last month, disappointing expectations for a 0.1% rise, after a flat reading in August.
In addition, the Federal Reserve of New York reported that its manufacturing index tumbled to a six-month low of 6.2 in October from a reading of 27.5 the previous month. Analysts had expected the index to tick down to 25.5 this month.
The Canadian dollar had come under pressure earlier, as lower crude oil prices weighed on the commodity-linked currency.
The loonie was lower against the euro, with EUR/CAD advancing 0.90% to 1.4428.
Sentiment on the euro remained vulnerable amid growing concerns over the outlook for growth in the euro zone after data on Tuesday showed that the bloc's industrial production declined more than expected in August, while July's figure was revised down.
A separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October, fuelling further concerns over the euro zone's largest economy.