Investing.com - The U.S. dollar trimmed losses against the Canadian dollar on Tuesday pulling back from session lows after official data showed that U.S. orders for long lasting manufactured goods came in higher-than-forecast in February.
USD/CAD pulled away from one-week lows of 1.1124, to trade at 1.1161, unchanged for the day.
The pair was likely to find support at 1.100 and resistance at 1.1209, Tuesday’s high.
The greenback moved higher after the Commerce Department reported that U.S. durable goods orders rose 2.2% last month, snapping two months of declines and surpassing expectations for a 1% increase.
Core durable goods orders, which exclude transportation items, inched up 0.2%, slightly below forecasts for a 0.3% gain.
The data indicated that economy is gaining momentum in the wake of a weather induced slowdown.
The loonie, as the Canadian dollar is also known, was higher against the U.S. dollar earlier in the session as speculation that China could implement fresh economic stimulus measures bolstered risk appetite.
Elsewhere, the loonie was higher against the euro, with EUR/CAD down 0.26% to 1.5396.
The single currency remained under pressure as prospects for further monetary easing by the European Central Bank dampened demand for the single currency.
The single currency weakened on Tuesday after ECB governing council member Jens Weidmann said a negative deposit rate could be an appropriate way to address the impact of strong gains in the euro. He also said it was not out of the question for the ECB to buy loans or other assets from banks to fight deflation.