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Forex - USD/CAD rises to 1-month highs in early trade

Published 05/26/2015, 09:28 AM
© Reuters.  Greenback gains ground vs. loonie, hits 1-month peak
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Investing.com - The U.S. dollar rose to one-month highs against its Canadian counterpart on Tuesday, after the release of mixed U.S. durable goods orders data, as expectations for a U.S. rate hike in the coming months continued to support.

USD/CAD hit 1.2416 during early U.S. trade, the pair's highest since April 15; the pair subsequently consolidated at 1.2415, advancing 0.82%.

The pair was likely to find support at 1.2275, Monday's low and resistance at 1.2570, the high of April 15.

In a report, the U.S. Commerce Department said that total durable goods orders, which include transportation items, declined by 0.5% last month, compared to expectations for a drop of 0.4%.

Orders for durable goods in March were revised up to a gain of 5.1% gain from a previously reported increase of 4.7%.

Core durable goods orders, excluding volatile transportation items, inched up 0.5% in April, beating forecasts for an increase of 0.4%.

Core durable goods orders rose 0.6% in March, whose figure was revised up from previously reported gain of 0.3%.

The greenback remained broadly supported after Federal Reserve Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later in the year if the economy continues to improve as expected.

She attributed a slowdown in first quarter growth to "transitory factors", including a harsh winter, but reiterated that the timing of an initial rate hike would be data dependent.

The loonie was lower against the euro, with EUR/CAD adding 0.14% to 1.3539.

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