Investing.com - The U.S. dollar rose to one-week highs against its Canadian counterpart on Tuesday, even as data showed that U.S. durable goods orders fell more than expected last month, as concerns over Greek debt talks continued to lend broad support to the safe-haven greenback.
USD/CAD hit 1.2348 during early U.S. trade, the pair's highest since June 16; the pair subsequently consolidated at 1.2373, gaining 0.49%.
The pair was likely to find support at 1.2215, Monday's low and resistance at 1.2360, the high of June 15.
The U.S. Commerce Department reported on Tuesday that total durable goods orders, which include transportation items, declined by 1.8% last month, worse than expectations for a drop of 0.6%.
Orders for durable goods in April were revised to a drop of 1.5% from a previously reported decline of 1.0%.
Core durable goods orders, excluding volatile transportation items, inched up by 0.5% in May, missing forecasts for an increase of 0.6%. Core durable goods orders dipped 0.3% in April, whose figure was revised from previously reported drop of 0.2%.
The dollar strengthened broadly after euro zone finance ministers failed to reach agreement over Greece’s bailout at an emergency meeting on Monday, but indicated that a final deal could be made later this week.
Eurogroup head Jeroen Dijsselbloem said new reform proposals from the Greek government were “broad and comprehensive,” and a good basis to restart stalled negotiations.
The loonie was sharply lower against the euro, with EUR/CAD tumbling 1.24% to 1.3786.
The single currency shrugged off data on Tuesday showing that private sector activity in the euro area expanded at the fastest pace in four years this month, cementing the view that the economic recovery is gaining traction.
The preliminary reading of the Markit composite purchasing managers' index, which looks at both the manufacturing and service sectors, rose to 54.1 from a final reading of 53.6 in May. It was the highest level since May 2011 and above forecasts for a reading of 53.5.
The bloc’s manufacturing PMI rose to 52.5 this month from 52.2 in May, while the services PMI improved to 54.4 this month from 53.8.
France’s manufacturing sector expanded for the first time since April 2014 this month, as a broad based pick up in private business activity gained momentum. German private sector activity also expanded at a faster-than-expected pace.