Investing.com – The U.S. dollar erased gains against its Canadian counterpart on Tuesday, pulling back from a two-week high after government data showed that the U.S. trade deficit widened more-than-expected in May.
USD/CAD pulled back from 0.9779, the pair’s highest since June 29, to hit 0.9688 during early U.S. trade, unchanged on the day.
The pair was likely to find support at 0.9613, Monday’s low and resistance at 0.9778, the days high.
The Bureau of Economic Analysis said that the U.S. trade deficit widened to a seasonally adjusted USD50.2 billion in May, surpassing expectations for an increase to USD44.0 billion.
The report said U.S. exports totaled USD174.9 billion in May, while imports totaled USD225.1 billion.
A separate report showed that Canada’s trade deficit contracted in line with market expectations in May.
Statistics Canada said that Canada’ trade surplus narrowed to CAD0.8 billion in May, as exports increased 1.2% to CAD36.9 billion, while imports rose 1.1% to CAD37.8 billion.
The Canadian dollar also found support as crude oil for delivery in August pared steep losses on the New York Mercantile Exchange, shedding 0.71% to trade at USD94.47 a barrel after clawing back up from USD93.56, the lowest level since July 1 earlier in the day.
Raw materials, including oil account for about half of Canada’s export revenue.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.26% to hit 1.3556.
Later Tuesday, the Federal Reserve was to publish the minutes of its June policy-setting meeting.
USD/CAD pulled back from 0.9779, the pair’s highest since June 29, to hit 0.9688 during early U.S. trade, unchanged on the day.
The pair was likely to find support at 0.9613, Monday’s low and resistance at 0.9778, the days high.
The Bureau of Economic Analysis said that the U.S. trade deficit widened to a seasonally adjusted USD50.2 billion in May, surpassing expectations for an increase to USD44.0 billion.
The report said U.S. exports totaled USD174.9 billion in May, while imports totaled USD225.1 billion.
A separate report showed that Canada’s trade deficit contracted in line with market expectations in May.
Statistics Canada said that Canada’ trade surplus narrowed to CAD0.8 billion in May, as exports increased 1.2% to CAD36.9 billion, while imports rose 1.1% to CAD37.8 billion.
The Canadian dollar also found support as crude oil for delivery in August pared steep losses on the New York Mercantile Exchange, shedding 0.71% to trade at USD94.47 a barrel after clawing back up from USD93.56, the lowest level since July 1 earlier in the day.
Raw materials, including oil account for about half of Canada’s export revenue.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.26% to hit 1.3556.
Later Tuesday, the Federal Reserve was to publish the minutes of its June policy-setting meeting.