Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Friday, after the release of mixed U.S. housing data and as higher than expected inflation data from Canada lent support to the loonie.
USD/CAD hit 1.1213 during early U.S. trade, the pair's lowest since October 14; the pair subsequently consolidated at 1.1242, slipping 0.12%.
The pair was likely to find support at 1.1168, the low of October 13 and resistance at 1.1316, the high of October 14 and a five-year peak.
Official data showed that U.S. building permits rose 1.5% to 1.018 million units last month, disappointing expectations for an increase of 2.8% to 1.0.29 million units, after a 5.1% drop to 1.003 million units in August.
A separate report showed that U.S. housing starts rose 6.3% in September to 1.017 million units, beating expectations for a 4.8% gain. Housing starts for August were revised to a 12.8% fall from a previously estimated 14.4% decline.
Meanwhile, Statistics Canada reported that consumer price inflation rose 0.1% last month, compared to expectations for a flat reading, after a flat reading in August.
Core consumer price inflation, which excludes the eight most volatile items, increased by 0.2% in September, more than the expected 0.1% rise, after a 0.5% gain the previous month.
The loonie was also higher against the euro, with EUR/CAD shedding 0.28% to 1.4379.
Later in the day, the U.S. was to produce a preliminary report on consumer sentiment.