Investing.com - The U.S. dollar was steady near two-week lows against the Canadian dollar on Wednesday, as recent data indicating that the U.S. economy is improving supported risk appetite.
USD/CAD was almost unchanged at 1.0857, not far from Tuesday’s two-week lows of 1.0835.
The pair was likely to find support at 1.0815, the low of May 9 and resistance at 1.0900.
Market sentiment continued to be underpinned after data on Tuesday showed that U.S. durable goods orders rose unexpectedly in April and another report showed that U.S. consumer confidence improved in line with forecasts this month.
The Commerce Department said orders for long lasting manufactured goods rose 0.8%, compared to expectations of a 0.7% decline.
Separately, the Conference Board reported that its consumer conference index rose to 83 in May, up from a revised 81.7 in April, in line with economists’ expectations.
Risk appetite was also boosted by mounting expectations that the European Central Bank will implement new easing measures at its upcoming policy meeting next week, in order to shore up the fragile recovery in the euro zone.
Data released on Wednesday showing that the lending to companies in the euro area declined in April from the same month a year earlier reinforced easing expectations.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.4773.
Elsewhere, the US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to an eight week high of 80.55