Investing.com - The U.S. dollar edged lower against the Canadian dollar on Tuesday as investors awaited the outcome of this week’s keenly anticipated Federal Reserve meeting.
USD/CAD hit 1.0304 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0314, slipping 0.09%.
The pair was likely to find support at 1.0281, Monday’s low and a five-week low and resistance at 1.0335, the high of September 12.
Investors remained wary ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction to the bank’s USD85 billion-a-month stimulus program.
The greenback showed little reaction after data released on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase.
Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
In Canada, official data showed that manufacturing sales rose more-than-expected in July.
Statistics Canada said that manufacturing sales increased by 1.7%, more than expectations for a 1% increase. Manufacturing sales for June were revised to a 0.1% decline from a previously reported drop of 0.5%.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.06% to 1.3772.
The single currency was boosted after a report on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.
USD/CAD hit 1.0304 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0314, slipping 0.09%.
The pair was likely to find support at 1.0281, Monday’s low and a five-week low and resistance at 1.0335, the high of September 12.
Investors remained wary ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction to the bank’s USD85 billion-a-month stimulus program.
The greenback showed little reaction after data released on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase.
Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
In Canada, official data showed that manufacturing sales rose more-than-expected in July.
Statistics Canada said that manufacturing sales increased by 1.7%, more than expectations for a 1% increase. Manufacturing sales for June were revised to a 0.1% decline from a previously reported drop of 0.5%.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.06% to 1.3772.
The single currency was boosted after a report on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.