Investing.com - The U.S. dollar climbed higher against its Canadian counterpart on Tuesday, as declining oil prices weighed on demand for the commodity-related Canadian currency.
USD/CAD hit 1.4040 during early U.S. trade, the session high; the pair subsequently consolidated at 1.4056, gaining 0.80%.
The pair was likely to find support at 1.3904, Monday’s low and resistance at 1.4124, the high of January 28.
Oil prices dropped over 5% back toward $30 a barrel after Iran said it planned to increase crude exports to 2.3 million barrels per day in its next fiscal year, starting March 21.
Meanwhile, investors remained cautious amid ongoing concerns over global economic growth after data on Monday showed that manufacturing activity in China contracted for a sixth straight month in January.
Sentiment on the greenback remained fragile after data showed that manufacturing activity in the U.S. contracted again in January, holding near levels not seen since July 2009, and that U.S. consumer spending was flat in December.
The loonie was sharply lower against the euro, with EUR/CAD rallying 1.22% to 1.5366.