Investing.com - The U.S. rebounded from session lows against the Canadian dollar on Wednesday, after official data showed that the Canadian economy unexpectedly contracted in August.
USD/CAD pulled back from 0.9961, the pair’s lowest since October 26, to hit 1.0006 during early U.S. trade, gaining 0.14%.
The pair was likely to find support at 0.9959, the session low and resistance at 1.0075, the high of August 3.
Statistics Canada said gross domestic product contracted by 0.1% in August, disappointing expectations for growth of 0.2%.
The report said the first contraction since February was due to declines in goods production, with manufacturing as well as mining, oil and gas extraction activity much weaker than expected.
Year-over-year, Canada’s economy expanded by 1.2% in August, missing expectations for growth of 1.7%.
Investors were looking ahead to data on manufacturing activity in Chicago, as well as a U.S. government report on crude oil inventories later in the session.
In the euro zone, Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
The loonie, as the Canadian dollar is also known, was down against the euro, with EUR/CAD up 0.34% to 1.2994.
Euro zone finance ministers were to hold a conference call to discuss Greece’s progress on meeting austerity targets later in the day, but no decision on when the country will receive the next tranche of its bailout was expected.
USD/CAD pulled back from 0.9961, the pair’s lowest since October 26, to hit 1.0006 during early U.S. trade, gaining 0.14%.
The pair was likely to find support at 0.9959, the session low and resistance at 1.0075, the high of August 3.
Statistics Canada said gross domestic product contracted by 0.1% in August, disappointing expectations for growth of 0.2%.
The report said the first contraction since February was due to declines in goods production, with manufacturing as well as mining, oil and gas extraction activity much weaker than expected.
Year-over-year, Canada’s economy expanded by 1.2% in August, missing expectations for growth of 1.7%.
Investors were looking ahead to data on manufacturing activity in Chicago, as well as a U.S. government report on crude oil inventories later in the session.
In the euro zone, Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
The loonie, as the Canadian dollar is also known, was down against the euro, with EUR/CAD up 0.34% to 1.2994.
Euro zone finance ministers were to hold a conference call to discuss Greece’s progress on meeting austerity targets later in the day, but no decision on when the country will receive the next tranche of its bailout was expected.