Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, but remained supported as demand for the greenback broadly strengthened ahead of the Federal Reserve's highly-anticipated policy meeting.
USD/CAD hit 1.2997 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2999, falling 0.31%.
The pair was likely to find support at 1.2946, the low of July 23 and resistance at 1.3102, the high of July 24 and an 11-year high.
The greenback regained ground as investors awaited Wednesday’s Fed statement to see if policymakers will give any indication on the timing of an initial rate hike.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter after an unusually harsh winter.
Meanwhile, the commodity-linked Canadian dollar found mild support as oil prices eased off a seven-month low. Crude oil futures for September delivery inched up 0.01% to $47.39 in early U.S. morning hours.
The loonie was higher against the euro, with EUR/CAD retreating 0.77% to 1.4348.