Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Wednesday, after data showed that Canada's economy grew at a faster rate than expected in July, although upbeat U.S. jobs data still lent some support to the greenback.
USD/CAD hit 1.3388 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3401, edging down 0.16%.
The pair was likely to find support at 1.3314, Monday's high and resistance at 1.3458, Tuesday's high and an 11-year peak.
Statistics Canada reported on Wednesday that the country's gross domestic product rose 0.3% in July, beating expectations for an increase of 0.2%. Canada's economy grew by a rate of 0.4% in June, whose figure was revised from a previously estimated growth rate of 0.5%.
In the U.S., payroll processing firm ADP said non-farm private employment rose by 200,000 this month, above expectations for an increase of 194,000.
The economy created 186,000 jobs in August, whose figure was downwardly revised from a previously reported increase of 190,000.
Investors awaited comments by Federal Reserve Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank policymakers last week led to uncertainty over whether the Fed will raise short term interest rates this year.
New York Fed President William Dudley and San Francisco Fed head John Williams indicated support for a rate hike in 2015 in separate speeches on Monday, but Chicago Fed President Charles Evans said rates should remain on hold until mid-2016.
The loonie was higher against the euro, with EUR/CAD declining 0.73% to 1.4990.
The single currency came under pressure after Eurostat, the statistical body of the European Union, reported that the annual rate of inflation in the single currency bloc fell by 0.1% this month, compared to forecasts for a flat reading.
It was the first time in six months that the region saw declining inflation.
Another report showed that the euro zone unemployment rate remained unchanged at 11.0% in August.