Investing.com – The Canadian dollar trimmed losses against its U.S. counterpart on Tuesday, ahead of the Federal Reserves monthly policy setting meeting, but remained under pressure amid concerns over Japan’s escalating nuclear emergency.
USD/CAD hit 0.9974 during early U.S. trade, the pair’s highest since February 11; the pair subsequently consolidated at 0.9860, jumping 1.25%.
The pair was likely to find support at 0.9709, Monday’s low and resistance at 1.0000, the high of February 1.
Earlier in the day, an explosion at the No. 2 reactor at the Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, sent low levels of radiation floating towards the city.
Also Tuesday, official data showed that Canadian labor productivity outstripped expectations, rising 0.5% in the fourth quarter of 2010. Analysts had forecast an increase of 0.3%.
In the U.S., the New York Fed's manufacturing index topped expectations in March, climbing to 17.5 from 15.4 the previous month. Analysts had expected the index to rise to 16.5 in March. A separate report showed that U.S. import prices rose more than expected in February as costs increased for energy, industrial supplies and food.
The loonie was also sharply lower against the yen, with CAD/JPY tumbling 2.09% to hit 85.05.
Later in the day, the U.S. Fed’s Federal Open Market Committee was to announce its federal funds rate.
USD/CAD hit 0.9974 during early U.S. trade, the pair’s highest since February 11; the pair subsequently consolidated at 0.9860, jumping 1.25%.
The pair was likely to find support at 0.9709, Monday’s low and resistance at 1.0000, the high of February 1.
Earlier in the day, an explosion at the No. 2 reactor at the Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, sent low levels of radiation floating towards the city.
Also Tuesday, official data showed that Canadian labor productivity outstripped expectations, rising 0.5% in the fourth quarter of 2010. Analysts had forecast an increase of 0.3%.
In the U.S., the New York Fed's manufacturing index topped expectations in March, climbing to 17.5 from 15.4 the previous month. Analysts had expected the index to rise to 16.5 in March. A separate report showed that U.S. import prices rose more than expected in February as costs increased for energy, industrial supplies and food.
The loonie was also sharply lower against the yen, with CAD/JPY tumbling 2.09% to hit 85.05.
Later in the day, the U.S. Fed’s Federal Open Market Committee was to announce its federal funds rate.