Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, pulling away from fresh 12-1/2 year highs as concerns over declining oil prices and volatility in China persisted.
USD/CAD hit 1.4196 during early U.S. trade, the session low; the pair subsequently consolidated at 1.4190, slipping 0.17%.
The pair was likely to find support at 1.4062, Monday’s low and resistance at 1.4269, the session high and a fresh 12-1/2 year high.
The commodity-related Canadian dollar remained under broad selling pressure as crude oil prices fell to fresh 12-year lows on Tuesday amid concerns that slowing global demand is fueling a massive supply glut.
Separately, investors remained concerned over the extent of the economic slowdown in China, following a steep selloff in Chinese stocks and a renewed devaluation in the yuan since the start of the year.
Shares in China closed higher on Tuesday, after Beijing stepped up measures to support the yuan. China’s central bank guided the yuan higher for a third day, but uncertainty over Beijing’s currency policy persisted.
The loonie was higher against the euro, with EUR/CAD shedding 0.22% to 1.5408.