Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Wednesday, after the release of mixed retail sales data from Canada and as investors awaited further details on the U.S. tax reform plan due later in the day.
USD/CAD pulled back from 1.3604, the session high, to hit 1.3587 during early U.S. trade, still up 0.10%
The pair was likely to find support at 1.3496, Tuesday’s low and resistance at 1.3629, Tuesday’s high and a 14-month peak.
Statistics Canada reported on Wednesday that retail sales fell 0.6% in February, compared to expectations for a 0.1% downtick. Retail sales increased by 2.3% in January, whose figure was revised from a previously estimated 2.2% gain.
Core retail sales, which exclude automobiles, slipped 0.1% in February, beating expectations for a 0.3% fall.
The Canadian dollar dropped to a 14-month low against the greenback on Thursday amid concerns over an escalating trade dispute between Canada and the U.S.
On Wednesday, a Canadian official stated that the two countries made progress in their disagreement over Canadian lumber exports "but we are not there yet."
Meanwhile, the dollar found support after U.S. Treasury Secretary Steven Mnuchin confirmed Wednesday that the Trump administration’s tax plan will include a 15% corporate tax rate.
Speaking to CNBC ahead of today’s official announcement, which is expected at around 13.30 ET, Mnuchin said it would be the biggest tax cut and largest tax reform in history.
The loonie was higher against the euro, with EUR/CAD sliding 0.32% to 1.4782.