Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Tuesday, after downbeat U.S. manufacturing activity data and a disappointing foreign securities purchases report from Canada.
USD/CAD hit 1.0947 during early U.S. trade, the pair''s lowest since February 14; the pair subsequently consolidated at 1.0963, inching down 0.01%.
The pair was likely to find support at 1.0879, the low of January 14 and resistance at 1.1091, the high of February 11.
The Federal Reserve Bank of New York said that its general business conditions index came in at 4.48 this month, down from a 20-month high of 12.51 in December. Analysts had expected the index to decline to 9.00.
The new orders index fell to zero from a two-year high of 11 last month.
A series of soft U.S. economic data has prompted some investors to wonder whether the Federal Reserve will slow the pace of reductions to its asset-buying stimulus program.
In Canada, official data showed that foreign securities purchases declined by CAD4.28 billion in December, confounding expectations for a CAD9.97 billion increase. Foreign securities purchases in November were revised up to a CAD9.07 billion rise from a previously estimated CAD8.66 billion.
The loonie was lower against the euro, with EUR/CAD rising 0.37% to 1.5085.
Also Tuesday, German economic sentiment deteriorated slightly in February, as concerns that the economic recovery in the U.S. could lose momentum weighed.
The ZEW Centre for Economic Research said that its index of German economic sentiment came in at 55.7 this month, down from 61.7 in January. Analysts had expected an unchanged reading.
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