Investing.com - The U.S. dollar was lower against its Canadian counterpart on Thursday, after the release of mixed U.S. economic reports and as the Federal Reserve crushed expectations for an early rate hike.
USD/CAD hit 1.0957 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0950, sliding 0.47%.
The pair was likely to find support at 1.0923, Wednesday's low and resistance at 1.1071, the high of September 16.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 13 decreased by 36,000 to 280,000, the lowest level since mid-July, from the previous week’s revised total of 316,000.
Analysts had expected jobless claims to fall by 11,000 to 305,000 last week.
Separately, the U.S. Commerce Department said that the number of building permits issued last month dropped by 5.6% to 998,000 units from July’s total of 1.057 million.
Analysts expected building permits to fall by 0.4% to 1.045 million units in August.
The report also showed that U.S. housing starts tumbled by 14.4% last month to hit 956,000 units from July’s total of 1.117 million units, compared to expectations for an increase to 1.040 million.
The data came a day after the Fed reiterated that it expects rates to remain on hold for a "considerable time", after its bond purchasing program ends, but it also outlined in more detail how it will start to raise short term interest rates when the time comes.
The Fed cut its monthly asset purchase program by another $10 billion, keeping the program on track to finish next month.
Speaking at the bank’s post-policy meeting press conference Chair Janet Yellen stressed that the timing of any change in interest rates is dependent on the strength of the economic recovery.
In Canada, official data showed that foreign securities purchases rose by C$5.30 billion in July, beating expectations for an increase of C$2.47 billion, after a revised C$1.08 billion decline the previous month.
The loonie was higher against the euro, with EUR/CAD shedding 0.19% to 1.4125.
Later in the day, the U.S. was to produce data on manufacturing activity in the Philadelphia region.