Investing.com - The U.S. dollar trimmed losses against its Canadian counterpart on Wednesday, as investors eyed the Federal Reserve’s policy decision, although higher oil prices and upbeat Canadian data supported the local currency.
USD/CAD eased off 1.3139, the pair’s lowest since Monday, to hit 1.3189 during early U.S. trade, steady for the day.
The pair was likely to find support at 1.3126, the low of September 15 and resistance at 1.3249.
Investors remained cautious ahead of the Fed’s monthly policy decision, due later Wednesday. Although most traders expect the U.S. central bank to hold back from raising interest rates this month, any comments regarding the Fed’s future policy moves will be closely watched.
Meanwhile, the commodity-related Canadian dollar found support as oil prices rallied on Wednesday on bets for bullish U.S. stockpile data later in the day.
Also Wednesday, Statistics Canada said that wholesale sales rose 0.3% in July, beating expectations for an uptick of 0.2%, after a 0.7% gain the previous month.
The loonie was steady against the euro, with EUR/CAD at 1.4699.