Investing.com - The U.S. dollar trimmed losses against its Canadian counterpart on Wednesday, after mixed U.S. economic data while investors continued to watch Greece for new steps toward a second bailout.
USD/CAD pulled back from 0.9939, the pair’s lowest since February 9, to hit 0.9965 during early U.S. trade, still down 0.24%.
The pair was likely to find support at 0.9924, the low of February 9 and resistance at 1.0024, Tuesday’s high.
Sentiment was lifted earlier after data showed that manufacturing activity in the New York area improved more-than-expected in January, climbing to the highest level since June 2010.
The Federal Reserve Bank of New York said that its general business conditions index improved to 19.5 in February from 13.5 in January.
Analysts had expected the index to improve to 14.2 in February.
Data also showed that industrial production in the U.S. was unexpectedly flat in January, confounding expectations for a 0.7% increase.
In a separate report, the U.S. Department of the Treasury said that net foreign purchases of long-term securities totaled USD17.9 billion in December, down from purchases of USD61.3 billion in December. Analysts had expected Treasury International Capital purchases to climb to USD62.3 billion in December.
Meanwhile, markets remained jittery after Reuters reported that European Union officials are looking at ways to delay Greece’s second bailout and still avoid a default amid concerns that political leaders in Athens are not fully committed to implementing harsh austerity measures demanded by international creditors.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
The loonie also found support as crude oil for delivery in March climbed 0.88% to trade at USD101.97 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was higher against the euro with EUR/CAD declining 0.58%, to hit 1.3046.
Also Wednesday, the Federal Reserve said that its capacity utilization rate rose slightly less-than-expected in January, rising to 78.5% after a reading at 78.6% the previous month.
Analysts had expected the rate to rise to 78.6% in January.
USD/CAD pulled back from 0.9939, the pair’s lowest since February 9, to hit 0.9965 during early U.S. trade, still down 0.24%.
The pair was likely to find support at 0.9924, the low of February 9 and resistance at 1.0024, Tuesday’s high.
Sentiment was lifted earlier after data showed that manufacturing activity in the New York area improved more-than-expected in January, climbing to the highest level since June 2010.
The Federal Reserve Bank of New York said that its general business conditions index improved to 19.5 in February from 13.5 in January.
Analysts had expected the index to improve to 14.2 in February.
Data also showed that industrial production in the U.S. was unexpectedly flat in January, confounding expectations for a 0.7% increase.
In a separate report, the U.S. Department of the Treasury said that net foreign purchases of long-term securities totaled USD17.9 billion in December, down from purchases of USD61.3 billion in December. Analysts had expected Treasury International Capital purchases to climb to USD62.3 billion in December.
Meanwhile, markets remained jittery after Reuters reported that European Union officials are looking at ways to delay Greece’s second bailout and still avoid a default amid concerns that political leaders in Athens are not fully committed to implementing harsh austerity measures demanded by international creditors.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
The loonie also found support as crude oil for delivery in March climbed 0.88% to trade at USD101.97 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was higher against the euro with EUR/CAD declining 0.58%, to hit 1.3046.
Also Wednesday, the Federal Reserve said that its capacity utilization rate rose slightly less-than-expected in January, rising to 78.5% after a reading at 78.6% the previous month.
Analysts had expected the rate to rise to 78.6% in January.