Investing.com - The U.S. dollar slipped lower against the Canadian dollar on Tuesday ahead of U.S. reports on consumer confidence and new home sales later in the session.
USD/CAD hit lows of 1.1173, the weakest since March 19 and was last down 0.12% to 1.1179.
The pair was likely to find support at 1.1121, the low of March 19 and resistance at 1.1245, Monday’s highs.
Investors were looking ahead to U.S. economic reports for further indications on the strength of the recovery.
The greenback ended Monday’s session lower against the other main currencies after lackluster U.S. manufacturing report for March indicated that the economy is still struggling to gain traction in the wake of a weather induced slowdown.
Earlier Tuesday, a report on U.S. house prices showed that prices rose slightly less than expected in January.
Standard & Poor’s with Case-Shiller said its house price index rose at an annualized rate of 13.2% in January from a year earlier, compared to forecasts for a 13.3% gain.
The buck rose to four-and-a-half year peaks against the Canadian dollar last week after Federal Reserve Chair Janet Yellen indicated that the bank could begin to raise interest rates as soon as early next year.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.49% to 1.5410.
The single currency came under pressure on Tuesday after a senior European Central Bank official said the bank could use negative interest rates to counter the euro’s higher exchange rate. A disappointing report on German business confidence also dampened demand for the euro.