The U.S. dollar was almost unchanged against its Canadian counterpart on Wednesday, as sentiment on the greenback weakened after Tuesday’s mixed U.S. data and as investors eyed an upcoming report on U.S. manufacturing activity due later in the day.
USD/CAD hit 1.3043 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3088.
The pair was likely to find support at 12906, the low of May 26 and resistance at 13191, the high of May 24.
Data on Tuesday showed that while U.S. consumer spending rose at the fastest rate in almost seven years in April, consumer confidence deteriorate and a gauge of business activity in the Chicago region disappointed.
The mixed data prompted investors to slightly push back expectations on the timing of the next rate hike by the Federal Reserve.
Expectations for a near-term rate hike mounted after U.S. central bank chief Janet Yellen said late last week it could be appropriate to raise rates in the coming months if the economy and the labor market continue to pick up as expected.
However, the Canadian dollar’s gains were limited as oil prices moved lower on Wednesday due to growing caution ahead of Thursday’s OPEC meeting.
The loonie was lower against the euro, with EUR/CAD rising 0.29% to 1.4617.