Investing.com - The U.S. dollar dropped against its Canadian counterpart on Tuesday, as concerns that weaker global growth could act as a drag on the U.S. economy weighed.
USD/CAD hit 1.1205 during early U.S. trade, the pair's lowest since October 14; the pair subsequently consolidated at 1.1212, retreating 0.65%.
The pair was likely to find support at 1.1184, the low of October 14 and resistance at 1.1362, the high of October 16.
Global growth concerns persisted after official data earlier showed that China’s economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.
It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.
The slowdown fuelled fears that China will miss its annual growth target of 7.5% and added to speculation that the government will need to roll out fresh stimulus measures to avert a sharper slowdown.
Market participants were looking ahead to Wednesday’s rate review by the Bank of Canada, with the bank expected to leave rates on hold at 1.0%.
Elsewhere, the loonie was sharply higher against the euro, with EUR/CAD tumbling 1.09% to 1.4290.
The single currency came under pressure after Reuters reported that the European Central Bank is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.
The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region.
Later in the day, the U.S. was to release private sector data on existing home sales.