Investing.com - The U.S. dollar pared back gains against the Canadian dollar on Monday after official data showed that U.S. durable goods orders fell at the fastest pace in almost a year in July.
pulled away from 1.0534, the session high, to hit 1.0508 during early U.S. trade, up 0.11% for the day.
The pair was likely to find support at 1.0468, Thursday’s low and resistance at 1.0567, Friday’s high and a seven-week high.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
Core durable goods orders, excluding volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The weak data added to uncertainty over whether the Federal Reserve will start to taper its USD85 billion-a-month asset purchase program next month.
Elsewhere, the loonie, as the Canadian dollar is also known, was trading close to 22-month lows against the euro, with rising 0.14% to 1.4064.
Demand for the single currency continued to be underpinned after a senior European Central Bank policymaker said Friday he did not see many arguments for a rate cut following a recent series of improved economic data from the region.
Trade volumes were expected to remain light on Monday, with markets in the U.K. closed for a national holiday.