Investing.com - The U.S. dollar declined against its Canadian counterpart on Friday, after the release of strong economic growth data from Canada and as last month’s reading of U.S. personal spending disappointed market expectations.
USD/CAD hit 1.3291 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3302, declining 0.31%.
The pair was likely to find support at 1.3262, the low of March 21 and resistance at 1.3401, Wednesday’s high.
The Canadian dollar was boosted after Statistics Canada said the country’s gross domestic product rose 0.6% in January, beating expectations for an increase of 0.3% and up from a growth rate of 0.3% in December.
In the U.S., the Commerce Department said personal spending rose 0.1% in February, compared to expectations for a gain of 0.2% and after a 0.2% rise in January.
Personal income, meanwhile, rose by 0.4% in January, in line with expectations and after rising 0.3% a month earlier.
But the greenback’s losses were expected to remain limited as string of upbeat U.S. data this week, including Thursday’s reports on fourth quarter GDP and initial jobless claims, continued to support overall optimism the economy’s perspectives.
The loonie was higher against the euro, with EUR/CAD slipping 0.13% to 1.4222.