Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, as disappointing Canadian data weighed on demand for the loonie, although mixed U.S. economic reports limited the greenback's gains.
USD/CAD hit 1.0343 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0336, gaining 0.29%.
The pair was likely to find support at 1.0281, the low of August 12 and resistance at 1.0391, the high of August 6.
Official data showed that manufacturing sales in Canada fell 0.5% in June, confounding expectations for a 1% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.
Data also showed that Canadian foreign securities purchases dropped unexpectedly in June, declining by CAD15.41 billion after a CAD6.78 billion the previous month, whose figure was revised up from CAD6.74 billion.
Analysts had expected foreign securities purchases to rise by CAD7.77 billion in June.
In the U.S., official data showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
The mixed reports added to speculation that the U.S. economic recovery is not yet strong enough for the the Federal Reserve to begin scaling back its USD85 billion-a-month asset purchase program later this year.
The loonie was lower against the euro with EUR/CAD advancing 0.49%, to hit 1.3824.
Later in the day, the University of Michigan was to release its closely watched preliminary data on consumer sentiment.
USD/CAD hit 1.0343 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0336, gaining 0.29%.
The pair was likely to find support at 1.0281, the low of August 12 and resistance at 1.0391, the high of August 6.
Official data showed that manufacturing sales in Canada fell 0.5% in June, confounding expectations for a 1% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.
Data also showed that Canadian foreign securities purchases dropped unexpectedly in June, declining by CAD15.41 billion after a CAD6.78 billion the previous month, whose figure was revised up from CAD6.74 billion.
Analysts had expected foreign securities purchases to rise by CAD7.77 billion in June.
In the U.S., official data showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
The mixed reports added to speculation that the U.S. economic recovery is not yet strong enough for the the Federal Reserve to begin scaling back its USD85 billion-a-month asset purchase program later this year.
The loonie was lower against the euro with EUR/CAD advancing 0.49%, to hit 1.3824.
Later in the day, the University of Michigan was to release its closely watched preliminary data on consumer sentiment.