The Canadian dollar was almost unchanged against USD on Tuesday, after the release of tepid Canadian economic data, although fresh hopes for progress on the euro zone front supported sentiment. USD/CAD hit 0.9946 during early U.S. trade, the pair’s highest since January 18; the pair subsequently consolidated at 0.9932, easing up 0.02%. The pair was likely to find support at 0.9910, the session low and resistance at 0.9947, the high of January 18. In a report, Statistics Canada said that core retail sales fell unexpectedly in November, ticking down 0.3% after a 0.2% rise the previous month. Analysts had expected core retail sales to be flat in November. Retail sales, including automobiles, rose 0.2% in November, beating expectations for a 0.2% fall, after a 0.5% increase the previous month. Meanwhile, markets continued to eye U.S. budget negotiations after Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit allowing the government to borrow enough to meet its obligations during that period. The loonie was steady against the euro with EUR/CAD inching up 0.06%, to hit 1.3225.
EasyForexNews Research Team