The U.S. held steady at one-week highs against its Canadian counterpart on Tuesday, supported by the release of upbeat U.S. retail sales data, while investors awaited the Federal Reserve’s upcoming policy statement.
USD/CAD hit 1.2873 during early U.S. trade, the pair’s highest since June 6; the pair subsequently consolidated at 1.2841.
The pair was likely to find support at 1.2655, the high of June 10 and resistance at 1.2984, the high of June 6.
The U.S. Commerce Department said that retail sales increased by 0.5% last month, compared to the forecast for a rise of 0.3%. Retail sales for April rose 1.3%.
Core retail sales, which exclude automobile sales, increased by 0.4% in May, in line with forecasts. Core sales in April gained 0.8%.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.
The loonie was higher against the euro, with EUR/CAD declining 0.43% to 1.4432.