Investing.com - The U.S. dollar rose against its Canadian counterpart on Wednesday, re-approaching nearly 6-year highs as sentiment on the greenback strengthened ahead of the Federal Reserve's monthly policy statement.
USD/CAD hit 1.2456 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2434, gaining 0.31%.
The pair was likely to find support at 1.2309, the low of January 22 and resistance at 1.2501, Tuesday's high.
Investors were looking ahead to the outcome of Wednesday’s Fed meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy.
The greenback had weakened on Tuesday, after data showed that U.S. orders for durable goods unexpectedly dropped 3.4% in December, indicating that the slowdown in global growth is weighing on the country's manufacturing sector.
However, another report showed that U.S. consumer confidence jumped to the highest level in more than seven years this month, boosted by an improving labor market and lower gasoline prices.
The loonie was steady against the euro, with EUR/CAD at 1.4103.