Investing.com - The U.S. dollar was little changed against the Canadian dollar on Wednesday after data showing an unexpected slump in U.S. orders for long lasting manufactured goods last month raised concerns over the outlook for first quarter growth.
USD/CAD was flat at 1.2501, holding above Tuesday’s three-week lows of 1.2426.
The Commerce Department reported that durable goods orders fell 1.4% last month, compared to expectations for a gain of 0.4%.
January’s orders were revised down to a 2.0% increase from a previously reported increase of 2.8%.
Core durable goods orders, which exclude transportation items, slipped 0.4%, against forecasts for a 0.3% gain.
Orders for core capital goods, a key barometer of private-sector business investment fell 1.4%, the sixth consecutively monthly decline.
Business spending has likely been hit by the stronger greenback, while lower energy prices have also acted as a drag.
The greenback remained supported after data on Tuesday showing an uptick in underlying inflation indicated that the Federal Reserve would still have leeway to tighten monetary policy even with inflation running below target.
The dollar has come under pressure since the Fed indicated last week that it may raise interest rates more gradually than markets had expected.
Elsewhere, the dollar was lower against the euro and the yen, with EUR/USD up 0.49% to 1.0978 and USD/JPY sliding 0.17% to 119.54.
The euro gained ground on Wednesday after data showing German business confidence improved this month boosted the outlook for the euro area’s largest economy.
The Ifo Institute said its business climate index rose to 107.9 this month, up from 106.8 in February. Economists expected a reading of 107.3.
EUR/CAD was up 0.33% to 1.3691, off highs of 1.3763.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.3% to 97.14, pushed lower by the stronger euro.