Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Monday, even after the release of strong U.S. durable goods data, as sentiment on the greenback remained fragile ahead of the Federal Reserve's monthly policy statement.
USD/CAD hit 1.2979 during early U.S. trade, the pair's lowest since July 23; the par subsequently consolidated at 1.3003, down 0.34%.
The pair was likely to find support at 1.2932, the low of July 22 and resistance at 1.3102, Friday's high and an 11-year high.
The U.S. Commerce Department reported on Monday that total durable goods orders increased by 3.4% last month, beating expectations for a gain of 3.0%. Orders for durable goods in May were revised to a drop of 2.1% from a previously reported decline of 2.2%.
Core durable goods orders, excluding volatile transportation items, inched up by 0.8% in June, topping forecasts for an increase of 0.5%. Core durable goods orders dipped 0.1% in May, whose figure was revised from previously reported flat reading.
Investors were turning their attention to Wednesday’s Fed statement to see if policymakers will give any indication on the timing of a rate hike.
On Friday, the Fed mistakenly published a staff projection pointing to a quarter point rate hike later this year.
The dollar has been boosted in recent weeks by mounting expectations that the U.S. central bank could raise rates as soon as September if the economy continues to improve as expected.
Meanwhile, the commodity-linked Canadian dollar continued to suffer from the oil market's ongoing downward trend. Crude oil futures for September delivery were down 1.39% to $47.47 in U.S. morning trade, the lowest level since January.
The loonie was lower against the euro, with EUR/CAD advancing 0.67% to 1.4427.
The single currency was boosted after the Ifo research institute said earlier that its business climate index rose to 108.0 from a reading of 107.5 in June, compared to expectations of 107.2.