Forex - USD/CAD trims gains after better-than-expected Canada data

Published 10/18/2010, 08:43 AM
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Investing.com – The U.S. dollar trimmed gains against its Canadian counterpart on Monday, retreating from a 6-day high after the release of better-than-expected Canadian economic data.

USD/CAD retreated from 1.0227, the pair’s highest since October 10 to hit 1.0187 during European afternoon trade, gaining 0.88%.

The pair was likely to find support at 1.0011, last Friday’s low and resistance at 1.0272, the high of October 5.

Earlier in the day, official data showed that foreign investments in Canadian securities rose significantly more-than-expected in August.

In a report, Statistics Canada said that foreign investment rose to a seasonally adjusted CAD 11.09 billion in August, after rising to a revised CAD 5.51 billion in July. Analysts had expected foreign investment to increase to CAD 6.01 billion in August.

The report said that non-Canadian residents added CAD 11.1 billion to their portfolios in August, with the majority of the investments going to corporate and government business enterprise bonds.

The loonie was also down against the euro, with EUR/CAD gaining 0.37% to hit 1.4172.

Later in the day, the U.S. was to release official data on TIC long term purchases as well as data on the capacity utilization rate and industrial production.

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