Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Wednesday, after the release of downbeat U.S. housing sector data and as an upbeat report on Canadian manufacturing sales lent support to the local currency.
USD/CAD was down 0.09% at 1.2512 by 09:30 a.m. ET (13:30 GMT).
The U.S. Commerce Department reported on Wednesday that the number of housing starts and building permits slumped more than expected in September, dampening optimism over the health of the U.S. housing sector.
But the greenback had broadly strengthened following reports on Monday that U.S. President Donald Trump was favoring Stanford economist John Taylor to replace Federal Reserve Chair Janet Yellen next year. Taylor is seen as more hawkish than current Yellen.
Trump is expected to meet with Yellen later in the week as part of his search for a new candidate for her position.
Market participants are also keeping an eye on current Fed Governor Jerome Powell and former Fed official Kevin Warsh as potential candidates to succeed Yellen when her term ends in February.
In Canada, official data showed that manufacturing sales rose more than expected in August.
The commodity-related Canadian dollar also benefited from rising oil prices on Wednesday, ahead of the weekly U.S. supply data.
The loonie was steady against the euro, with EUR/CAD at 1.4726.