Investing.com - The U.S. dollar fell against its Canadian counterpart on Wednesday, to trade near five-and-a-half month lows after data showed that U.S. first quarter growth was revised sharply lower.
USD/CAD 1.0721 during European afternoon trade, the session low; the pair subsequently consolidated at 1.0723, slipping 0.20%.
The pair was likely to find support at 1.0587 and resistance at 1.0754, the high of June 23.
The greenback came under pressure after the Commerce Department said gross domestic product contracted at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.
U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.
The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department said.
The data showed personal consumption grew 1.0% in the three months to March, below expectations for a 2.4% increase and down from an initial estimate of 3.5%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
A separate report showed that U.S. durable goods orders fell 1.0% in May, while core durable goods orders fell 0.1%. Market expectations had been for an increase of 0.2% and 0.4%, respectively.
Meanwhile, demand for the Canadian dollar remained supported after data last week showed that the annual rate of inflation in Canada rose to 2.3% in May. It was the first time in more than two years that the annual inflation rate exceeded the Bank of Canada’s 2% target, fuelling optimism over the economic recovery.
The loonie was little changed against the euro, with EUR/CAD inching up 0.01% to 1.4621.
In the euro zone, market research group Gfk earlier said that its German consumer climate index rose to a seven-and-a-half year high of 8.9 in June, from 8.6 in May, whose figure was revised up from a previously estimated reading of 8.5. Analysts had expected the index to tick down to 8.5 this month.