Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Tuesday, but remained within close distance of a two-month peak after data showed that the U.S. economy grew more than initially estimated in the third quarter.
USD/CAD hit 1.3324 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3337, shedding 0.20%.
The pair was likely to find support at 1.3242, the low of November 19 and resistance at 1.3437, the high of November 23.
The U.S. Commerce Department reported on Tuesday that gross domestic product grew at an annual rate of 2.1% in the three months to September, in line with expectations.
Preliminary data initially pegged U.S. growth at 1.5% in the third quarter. The U.S. economy grew 3.9% in the second quarter.
The upbeat data added to expectations that the Federal Reserve is on track to raise interest rates next month.
The loonie was steady against the euro, with EUR/CAD at 1.4210.
The euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2.
But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.