Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Wednesday, as investors eyed a highly-anticipated speech by Federal Reserve Chair Janet Yellen due on Friday.
USD/CAD hit 1.2953 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2932, adding 0.16%.
The pair was likely to find support at 1.2854, Tuesday’s low and resistance at 1.2997, the high of August 12.
Markets were waiting to see if Yellen will restate the hawkish view of the economy expressed by Fed officials last week or echo the minutes of the Fed’s July meeting, which indicated that officials are divided on when to raise rates.
The greenback remained mildly supported after data on Tuesday showed that U.S. new home sales jumped by 12.4% to 654,000 units last month, compared to expectations for a 2.0% decline.
But investors remained cautious ahead of a speech by Federal Reserve Chair Janet Yellen scheduled on Friday.
Meanwhile, the commodity-related Canadian dollar was pressured lower by declining oil prices on Wednesday, ahead of the weekly U.S. stockpiles report.
The loonie was higher against the euro, with EUR/CAD slipping 0.18% to 1.4572.