Forex - USD/CAD Pulls Back From Daily Low as Crude Erases Gains

Forexpros – The U.S. dollar pulled back from a daily low against its Canadian counterpart on Tuesday, as crude oil, Canada’s largest export, erased gains, while a report showed that Canadian retail sales broadly met market expectations in June.

USD/CAD pulled away from 0.9850, the daily low, to hit 0.9887 during early U.S. trade, still down 0.16% over the day.

The pair was likely to find support at 0.9825, Friday’s low and resistance at 0.9937, the high of August 18.

Statistics Canada said retail sales rose 0.7% in June, after increasing by an upwardly revised 0.3% the previous month. Analysts had expected retail sales to rise by 0.6%.

Excluding automobile sales, retail sales declined 0.1% after rising by an upwardly revised 0.6% in May. Analysts had expected core retail sales to rise by 0.3% in June.

Meanwhile, on the New York Mercantile Exchange, crude oil for delivery in October fell 0.57% to hit USD83.95 a barrel, after peaking at USD86.05 earlier in the session.

Raw materials, including oil account for about half of Canada’s export revenue.

Elsewhere, the loonie was down against the euro, with EUR/CAD rising 0.17% to hit 1.4250.

Later Tuesday, the U.S. was to release official data on new home sales.

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