Investing.com - The U.S. dollar rose against its Canadian counterpart on Tuesday, as it mildly recovered from speculation the Federal Reserve will most likely hold off from raisinginterest rates this year, although gains were expected to remain limited.
USD/CAD hit 1.3067 during early U.S. trade, the pair's highest since October 7; the pair subsequently consolidated at 1.3072, gaining 0.57%.
The pair was likely to find support at 1.2898, Monday's low and resistance at 1.3176, the high of October 5.
The greenback remained under pressure after the minutes from the Federal Reserve's September policy meeting, published last week, reinforced expectations that U.S. interest rates will remain on hold until well into 2016.
However safe-haven demand re-emerged after official data released earlier Tuesday showed that Chinese imports tumbled 20.4% in September on a year-over-year basis, the eleventh straight monthly decline.
Exports fell by a smaller than forecast 3.7% from a year earlier, resulting in a trade surplus of $60.34 billion.
The weak data underlined concerns over weakening demand for the world’s second largest economy.
The loonie was lower against the euro, with EUR/CAD advancing 0.80% to 1.4880.
In the euro zone, the ZEW Centre for Economic Research reported on Tuesday that its index of German economic sentiment fell to a one-year low of 1.9 this month from 12.1 in September, well below economist’s forecasts for a reading of 6.0.
It was the sixth consecutive monthly decline.
A separate index, measuring current conditions dropped to 55.2 from 67.5 points in September, compared to expectations for a drop to 64.7.