Investing.com - The U.S. dollar remained lower against its Canadian counterpart on Tuesday, despite the release of tepid Canadian retail sales data, as higher oil prices lent support to the commodity-related currency.
USD/CAD hit 1.3378 during early U.S. trade, the pair’s lowest since November 10; the pair subsequently consolidated at 1.3389, down 0.21%.
The pair was likely to find support at 1.3259, the low of November 9 and resistance at 1.3515, Monday’s high.
Statistics Canada reported on Tuesday that retail sales rose 0.6% in September, in line with expectations.
Retail sales ticked up 0.1% in August, whose figure was revised from a previously estimated 0.1% dip.
Core retail sales, which exclude automobiles, were flat last month, disappointing expectations for an increase of 0.5% and after a 0.2% rise the previous month.
But the Canadian dollar still found support as oil prices hovered at three-week highs amid growing hopes for a global production freeze deal as soon as next week.
The greenback remained supported amid expectations that President-elect Donald Trump’s plans to ramp up fiscal spending and cut taxes will spur economic growth and inflation.
Faster growth would spark inflation, which in turn would prompt the Fed to tighten monetary policy a faster rate than had previously been expected.
The U.S. dollar has also been boosted by bets that the U.S. central bank will almost certainly raise interest rates next month.
Fed Chair Janet Yellen on Thursday reiterated that a rate hike “could well become appropriate relatively soon.”
The loonie was higher against the euro, with EUR/CAD shedding 0.29% to 1.4220.