The U.S. dollar was higher against its Canadian counterpart on Friday, pulling away from a three-month low after the release of better-than-expected economic reports from both Canada and the U.S.
USD/CAD hit 1.2931 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2905, gaining 0.37%.
The pair was likely to find support at 1.2719, the low of July 15, and resistance at 1.3039, Wednesday’s high.
Statistics Canada reported on Friday that manufacturing sales fell 0.2% in August, compared to expectations for a 1.0% decline, after a 1.7% rise the previous month.
A separate report showed that Canada’s foreign securities purchases increased by C$3.11 billion in August after a C$10.09 billion drop in July, whose figure was revised from a previously estimated C$10.12 billion decline.
Analysts had expected foreign securities purchases to rise by C$2.21 billion in August.
In the U.S., data showed that industrial production fell 0.2% last month, in line with expectations. Industrial production ticked down 0.1% in August, whose figure was revised from a previously estimated 0.4% drop.
Data also showed that U.S. manufacturing production slipped 0.1% in September, compared to expectations for a 0.2% fall. Manufacturing production declined 0.4% in August, whose figure was revised from a previously estimated 0.5% slide.
The loonie was also lower against the euro, with EUR/CAD adding 0.13% to 1.4655.
Also Friday, Eurostat said the euro zone’s consumer price index rose 0.2%, in line with expectations and up from an initial estimate of 0.0%.