Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Tuesday, pulling back from a two-day high as crude oil, Canada’s largest export, surged to a three-week high.
USD/CAD pulled away from 0.9635, the pair’s highest since Friday, to hit 0.9616 during early U.S. trade, unchanged on the day.
The pair was likely to find support at 0.9578, Monday’s low and a two-month low and resistance at 0.9703, the high of June 30.
Crude oil for delivery in August jumped 1.18% in post holiday weekend trade on the New York Mercantile Exchange, to trade at USD96.16 a barrel, the highest price since June 15.
Raw materials, including oil account for about half of Canada’s export revenue.
Earlier in the day, the greenback gained as speculation over a rate hike by China mounted after the People's Bank of China said in a statement Monday that inflationary pressures "are still high" while the economy continues to grow at a steady and relatively fast pace.
Meanwhile, the Canadian dollar was up against the euro, with EUR/CAD shedding 0.39% to hit 1.3919.
Later Tuesday, the U.S. was to publish government data on factory orders.
USD/CAD pulled away from 0.9635, the pair’s highest since Friday, to hit 0.9616 during early U.S. trade, unchanged on the day.
The pair was likely to find support at 0.9578, Monday’s low and a two-month low and resistance at 0.9703, the high of June 30.
Crude oil for delivery in August jumped 1.18% in post holiday weekend trade on the New York Mercantile Exchange, to trade at USD96.16 a barrel, the highest price since June 15.
Raw materials, including oil account for about half of Canada’s export revenue.
Earlier in the day, the greenback gained as speculation over a rate hike by China mounted after the People's Bank of China said in a statement Monday that inflationary pressures "are still high" while the economy continues to grow at a steady and relatively fast pace.
Meanwhile, the Canadian dollar was up against the euro, with EUR/CAD shedding 0.39% to hit 1.3919.
Later Tuesday, the U.S. was to publish government data on factory orders.