Investing.com - The U.S. dollar tumbled to a one-week low against its Canadian counterpart on Tuesday, as risk appetite recovered after stronger-than-expected U.S. housing data and amid easing concerns over the euro zone debt crisis.
USD/CAD hit 1.0266 during early U.S. trade, the pair’s lowest since December 13; the pair subsequently consolidated at 1.0273, falling 1.09%.
The pair was likely to find support at 1.0231, the low of December 13 and resistance at 1.0388, the days high.
Demand for riskier assets was boosted after the U.S. Census Bureau said in a report that U.S. building permits rose to the highest level since March 2010 last month, while U.S. housing starts climbed to a 19-month high.
The upbeat U.S. data came after German research institute Ifo said that its Business Climate Index unexpectedly rose in December, confounding expectations for a decline.
Also Tuesday, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds, easing concerns over the fiscal health of the region’s fourth-largest economy.
The Canadian dollar shrugged off government data showing that consumer prices rose less-than-expected in November.
Statistics Canada said consumer price inflation rose 0.1% last month, below expectations for a 0.3% gain, bringing the annualized rate of CPI to 2.9%. The core inflation rate rose 2.1% in November on the year.
The loonie was also higher against the euro, with EUR/CAD shedding 0.21% to hit 1.3474.
Also Tuesday, crude oil prices rallied on the back of a broadly weaker greenback, with crude oil for delivery in February trading at USD96.92 a barrel on the New York Mercantile Exchange, jumping 3.05%.
Raw materials, including oil account for about half of Canada’s export revenue.
USD/CAD hit 1.0266 during early U.S. trade, the pair’s lowest since December 13; the pair subsequently consolidated at 1.0273, falling 1.09%.
The pair was likely to find support at 1.0231, the low of December 13 and resistance at 1.0388, the days high.
Demand for riskier assets was boosted after the U.S. Census Bureau said in a report that U.S. building permits rose to the highest level since March 2010 last month, while U.S. housing starts climbed to a 19-month high.
The upbeat U.S. data came after German research institute Ifo said that its Business Climate Index unexpectedly rose in December, confounding expectations for a decline.
Also Tuesday, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds, easing concerns over the fiscal health of the region’s fourth-largest economy.
The Canadian dollar shrugged off government data showing that consumer prices rose less-than-expected in November.
Statistics Canada said consumer price inflation rose 0.1% last month, below expectations for a 0.3% gain, bringing the annualized rate of CPI to 2.9%. The core inflation rate rose 2.1% in November on the year.
The loonie was also higher against the euro, with EUR/CAD shedding 0.21% to hit 1.3474.
Also Tuesday, crude oil prices rallied on the back of a broadly weaker greenback, with crude oil for delivery in February trading at USD96.92 a barrel on the New York Mercantile Exchange, jumping 3.05%.
Raw materials, including oil account for about half of Canada’s export revenue.