Investing.com - The U.S. dollar hovered lower but steady against its Canadian counterpart on Friday as investors digested upbeat data on both sides of the North American border.
In U.S. trading, USD/CAD was down 0.03% at 1.0858, up from a session low of 1.0811 and off a high of 1.0863.
The pair was likely to find support at 1.0797, the low from July 29, and resistance at 1.0998, the high from Aug. 25.
In the U.S. earlier, the Thomson Reuters/University of Michigan revised consumer sentiment index came in at 82.5 this month, up from a preliminary reading of 79.2 and exceeding expectations for a reading of 80.1.
July's final reading came in at 81.8, and the uptick in the final August reading gave the dollar support by keeping expectations firm that the Federal Reserve will close stimulus programs around October and hike interest rates some time in 2015.
Separately, data revealed that the Chicago-area purchasing managers' index rose to 64.3 in August from 52.6 in July, beating expectations for an increase to 56.0.
On a less positive note, the Bureau of Economic Analysis reported that U.S. personal spending fell 0.1% last month, confounding expectations for a 0.2% rise, after an increase of 0.4% in June, though Friday's overall positive data coupled with upbeat reports from earlier this week reminded markets that the days of ultra-loose U.S. monetary policy that have weakened the greenback for years are coming to a close.
On Thursday, the Commerce Department reported that U.S. economy grew at a revised annualized rate of 4.2%, up from a preliminary estimate of 4.0% and better than market forecasts for a downward revision to 3.9%.
Separately, the loonie saw support of its own after Statistics Canada said the country's gross domestic product expanded by 0.3% in June, in line with expectations. Year-on-year, Canada's economy grew by 3.1% in June, beating expectations for a 2.7% expansion.
Elsewhere, the Canadian dollar was up against the euro, with EUR/CAD down 0.30% at 1.4276, and up against the pound, with GBP/CAD down 0.07% at 1.8003.