Investing.com - The U.S. dollar edged up against its Canadian counterpart on Monday, re-approaching a six-year high as upbeat U.S. personal spending data added to optimism over the strength of the country's econpmy.
USD/CAD hit 1.3379 during early U.S. trade, the pair's highest since September 24; the pair subsequently consolidated at 1.3354, adding 0.13%.
The pair was likely to find support at 1.3229, the low of September 23 and resistance at 1.3417, the high of September 24 and a six-year peak.
The U.S. Bureau of Economic Analysis reported that personal spending rose 0.4% in August, beating expectations for an increase of 0.3%. Personal spending rose 0.4% in July, whose figure was revised from a previously estimated 0.3% gain.
The report also showed that U.S. personal income increased by 0.3% last month, compared to expectations for a 0.4% gain. Personal income rose 0.5% in July, whose figure was revised from a previously estimated 0.4% increase.
The data added to support for the greenback after Federal Reserve Chair Janet Yellen said last Thursday that the U.S. central bank remains on track to raise interest rates this year.
The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month.
Meanwhile, demand for the Canadian dollar was weighed by weakening oil prices. Crude oil futures for November delivery were down 2.30% at $44.65 at the open of the U.S. trading session.
The loonie was higher against the euro, with EUR/CAD slipping 0.17% to 1.4898.