Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, but remained close to a one-month peak as upbeat U.S. inflation data added to expectations for a December rate hike by the Federal Reserve.
USD/CAD hit 1.3298 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3304, shedding 0.21%.
The pair was likely to find support at 1.3221, the low of November 12 and resistance at 1.3432, the high of September 30.
The U.S. Commerce Department reported that consumer prices increased by 0.2% last month, matching forecasts and following a fall of 0.2% in September.
Year-over-year, consumer prices were 0.2% higher from the same month a year earlier, compared to expectations for a 0.1% increase.Ccore consumer prices, which exclude food and energy costs, increased by 0.2%, meeting expectations.
A separate report showed that that U.S. industrial production fell 0.2% last month, disappointing expectations for a gain of 0.1%. Industrial production fell by 0.2% in September.
Meanwhile, U.S. manufacturing production rose 0.4%, beating forecasts for a 0.2% increase and following a decline of 0.1% in September.
The loonie was higher against the euro, with EUR/CAD retreating 0.38% to 1.4192.
Markets shrugged off a report by the ZEW Centre for Economic Research showing that its index of German economic sentiment rose by 8.5 points to 10.4 this month from October’s reading of 1.9, which was a 12-month low.
Analysts had expected the index to rise by 4.1 points to 6.0 in November.
However, the index of euro zone economic sentiment declined to a 12-month low of 28.3 in November from 30.1 a month earlier, missing forecasts for 35.2.