Forex - USD/CAD rises to nearly 1-month highs

© Reuters. Greenback advances against loonie in early trade

Investing.com - The U.S. dollar rose to nearly one-month highs against its Canadian counterpart on Tuesday, as declining oil prices weighed on the Canadian currency, although the greenback's gains remained limited ahead of the Federal Reserve's highly-anticipated policy statement this week.

USD/CAD hit 1.3200 during early U.S. trade, the pair's highest since October 23; the pair subsequently consolidated at 1.3215, gaining 0.47%.

The pair was likely to find support at 1.3036, the low of October 23 and resistance at 1.3270, the high of October 2.

The commodity-linked Canadian dollar was hit by dropping oil prices. Crude oil futures for December delivery were down 2.55% at $42.88 at the open of U.S. trading.

In the U.S., the Commerce Department reported on Tuesday that total durable goods orders decreased by 1.2% last month, matching forecasts. Orders for durable goods in August were revised to a drop of 3.0% from a previously reported decline of 2.3%.

Core durable goods orders, which exclude volatile transportation items, fell 0.4% in September, compared to expectations for an increase of 0.1%. Core durable goods orders slumped 0.9% in August.

Investors were looking ahead to Wednesday’s monetary policy announcement by the Fed for fresh indications on the timing of an initial rate hike.

The loonie was lower against the euro, with EUR/CAD advancing 0.50% to 1.4615.

Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi signaled that further monetary easing is likely later this year.