Investing.com - The U.S. dollar bounced off an 11-month low against its Canadian counterpart on Tuesday, as declining oil prices weighed on the commodity-related Canadian currency, although demand for the greenback remained broadly under pressure.
USD/CAD pulled away from 1.2461, the pair’s lowest since June 2015, to hit 1.2628 during early U.S. trade, climbing 0.79%.
The pair was likely to find support at 1.2123 and resistance at 1.2695, the high of April 27.
The Canadian dollar weakened as oil prices moved lower on Tuesday, as traders locked in profits from the commodity’s recent rally five-month highs.
But the greenback’s gains were limited the Federal Reserve’s decision last week to keep interest rates on hold continued to weigh.
Markets were also jittery after data earlier showed that China’s Caixin manufacturing purchasing managers’ index ticked down to 49.4 in April from 49.7 the previous month, compared to expectations for a rise to 49.9.
The weak data added to concerns over slowdown in the world’s second largest economy.
The loonie was lower against the euro, with EUR/CAD advancing 0.99% to 1.4593.