Investing.com - The U.S. dollar moved higher against its Canadian counterpart on Tuesday, helped by the release of a strong U.S. economic growth report, while disappointing data from Canada weighed on the local currency.
USD/CAD hit 1.3481 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3459, gaining 0.37%.
The pair was likely to find support at 1.3373, the low of November 22 and resistance at 13542, the high of November 28.
Official data showed that the second estimate of third quarter U.S. gross domestic product rose 3.2%, up from the initial reading of a 2.9% expansion.
Analysts were looking for a smaller upward revision to just 3.0%.
The upbeat data added to optimism over the outlook for the U.S. economy amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.
The strong report also added to expectations that the Federal Reserve will decide to raise interest rates at its December policy meeting.
In Canada, data on Tuesday showed that the current account deficit narrowed to C$18.3 billion in the third quarter from C$19.0 billion in the second quarter, whose figure was revised from a previously estimated deficit of C$19.9 billion.
Analysts had expected the current account deficit to narrow to C$16.8 billion in the last quarter.
The loonie was lower against the euro, with EUR/CAD up 0.11% at 1.4248.