Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Tuesday, as strong Canadian retail sales data boosted demand for the nation's currency, although upbeat third quarter economic growth data from the U.S. limited the greenback's losses.
USD/CAD hit 1.1263 during early U.S. trade, the session low; the pair subsequently consolidated at 1.1262, slipping 0.17%.
The pair was likely to find support at 1.1189, the low of November 21 and resistance at 1.1359, the high of November 29.
In a report, Statistics Canada said that retail sales rose 0.8% in September, more than the expected 0.6% gain, after a 0.2% slip in August.
Core retail sales, which exclude automobiles, were flat in September, compared to expectations for an increase of 0.4%, after a 0.2% fall the previous month.
Meanwhile, the U.S. Commerce Department said gross domestic product grew at an annual rate of 3.9% in the three months ending September 30, above expectations for a reading of 3.3%.
Preliminary data initially pegged U.S. growth at 3.5% in the third quarter. The U.S. economy expanded by 4.6% in the previous quarter.
The greenback also found support after the Organization for Economic Co-operation and Development said the global economy will gradually improve over the next two years.
The loonie was higher against the euro, with EUR/CAD shedding 0.36% to 1.3987.
Also Tuesday, data confirmed that Germany narrowly avoided a recession in the third quarter, posting economic growth of 0.1%. Consumer spending rose by 0.7%, while exports were 1.9% higher.
The OECD warned that the euro area is at risk of deflation if growth stagnates or if inflation expectations continue to deteriorate and urged the European Central Bank to embark on quantitative easing measures.