Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Tuesday, but remained close to the previous session's two-week low after the release of weak trade balance reports from both the U.S. and Canada.
USD/CAD hit 1.3134 during early U.S. trade, the session high; the pair subsequently consolidatedat 1.3105, adding 0.16%.
The pair was likely to find support at 1.3006, the low of September 18 and resistance at 1.3270, the high of October 2.
Official data showed that the U.S. trade deficit widened to $48.33 billion in August from $41.81 billion in July, whose figure was revised from a previously estimated deficit of $41.90 billion. Analysts had expected the trade deficit to widen to $47.40 billion in August.
The dollar remained under pressure as weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.
In Canada, data on Tuesday showed that the trade deficit widened to C$2.53 billion in August from C$0.82 billion in July, whose figure was revised from a previously estimated deficit of C$0.59 billion.
Analysts had expected the trade deficit to widen to C$1.20 billion in August.
The loonie was lower against the euro, with EUR/CAD advancing 0.37% to 1.4690.