Investing.com - The U.S. dollar fell against its Canadian counterpart on Monday, as sentiment on the greenback remained fragile ahead of the Federal Reserve’s policy meeting this week, while rising oil prices boosted demand for the commodity-related Canadian currency.
USD/CAD hit 1.3136 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3161, retreating 0.41%.
The pair was likely to find support at 1.3126, the low of September 15 and resistance at 1.3249, Friday’s high and a one-and-a-half month peak.
The greenback had strengthened after data on Friday showed that U.S. consumer prices rose 0.2% in August, compared to expectations for a 0.1% gain. Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%.
The strong data sparked fresh speculation over a potential U.S. rate hike this month.
Meanwhile, the Canadian dollar was boosted by a rebound in oil prices on Monday, after Venezuela said OPEC and non-OPEC producers were close to reaching an output stabilizing deal.
The loonie was higher against the euro, with EUR/CAD slipping 0.16% to 1.4708.