Investing.com - The U.S. dollar dropped to three-week lows against its Canadian counterpart on Thursday, as rising oil prices lent support the Canadian currency, while weak U.S. durable goods orders data weighed on the greenback.
USD/CAD hit 1.3948 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3975, tumbling 0.90%.
The pair was likely to find support at 1.38929, the low of January 5 and resistance at 1.4157, Wednesday’s high.
The commodity-related Canadian dollar was boosted as oil prices rose above $34 a barrel on Thursday, after falling to 12-year lows below $27 a barrel last week.
In the U.S., the U.S. Commerce Department said that total durable goods orders tumbled by 5.1% last month, compared to forecasts for a decline of 0.6%.
Core durable goods orders, which exclude volatile transportation items, fell by 1.2% in December, disappointing expectations for a drop of 0.1%.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 22 decreased by 14,000 to 278,000 from the previous week’s total of 294,000, which was the highest since April.
Analysts expected jobless claims to fall by 12,000 to 282,000 last week.
The data came a day after the Federal Reserve left interest rates on hold at the conclusion of its two-day policy meeting on Wednesday, after raising interest rates for the first time in nearly a decade in December.
The U.S. economy is still on track for moderate growth and a stronger labor market even with "gradual" rate increases, the bank said without giving any indications on the pace of future rate hikes.
The loonie was higher against the euro, with EUR/CAD declining 0.70% to 1.5248.