Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Friday, pulling away from three-month highs after the release of mixed Canadian data, while indications that the Federal Reserve could soon begin tapering its stimulus program continued to support the greenback.
USD/CAD pulled away from 1.0569, the pair's highest since August 23, to hit 1.0536 during early U.S. trade, still up 0.16%.
The pair was likely to find support at 1.0475, the low of September 5 and resistance at 1.0586, the high of July 8.
In Canada, official data showed that core retail sales, which exclude automobiles, were flat in September, confounding expectations for a 0.4% rise, while retail sales rose 1% in September, exceeding the expected 0.5% increase.
Consumer price inflation in Canada fell 0.2% in October, disappointing expectations for a 0.2% rise, while core consumer price inflation, which excludes rose 0.2% last month, compared to expectations for a flat reading.
Meanwhile, demand for the greenback remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to 323,000.
The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The loonie was lower against the euro with EUR/CAD climbing 0.56%, to hit 1.4261.
Also Friday, the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month.
The data strengthened the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month.
USD/CAD pulled away from 1.0569, the pair's highest since August 23, to hit 1.0536 during early U.S. trade, still up 0.16%.
The pair was likely to find support at 1.0475, the low of September 5 and resistance at 1.0586, the high of July 8.
In Canada, official data showed that core retail sales, which exclude automobiles, were flat in September, confounding expectations for a 0.4% rise, while retail sales rose 1% in September, exceeding the expected 0.5% increase.
Consumer price inflation in Canada fell 0.2% in October, disappointing expectations for a 0.2% rise, while core consumer price inflation, which excludes rose 0.2% last month, compared to expectations for a flat reading.
Meanwhile, demand for the greenback remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to 323,000.
The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The loonie was lower against the euro with EUR/CAD climbing 0.56%, to hit 1.4261.
Also Friday, the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month.
The data strengthened the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month.