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Forex - USD/CAD falls to 2-day low after durable goods data

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Forexpros - The broadly weaker U.S. dollar was down against its Canadian counterpart on Wednesday, falling to a two-day low after better-than-expected data on U.S. durable goods orders boosted appetite for riskier assets.

USD/CAD hit 0.9839 during U.S. morning trade, the lowest since August 22; the pair subsequently consolidated at 0.9856, shedding 0.17%.

The pair was likely to find support at 0.9797, the low of August 18 and resistance at 0.9918, the high of August 22.

The U.S. Census Bureau said earlier that core durable goods orders, excluding transportation items, rose by 0.7% in July, confounding expectations for a 0.4% decline.

The previous month's figure was revised up to 0.6% from a previously reported 0.1% increase.

Durable goods orders including transportation items jumped by a seasonally adjusted 4.0% in July, doubling expectations for a 2.0% gain. June's figure was revised to a 1.3% drop from a previously reported 2.1% decline.

The loonie found further support after crude oil for delivery in October edged 0.3% higher to trade at USD85.65 a barrel on the New York Mercantile Exchange, erasing earlier losses of as much as 0.85%.

Raw materials, including oil account for about half of Canada's export revenue.

Meanwhile, the greenback was pressured amid speculation that Federal Reserve Chairman Ben Bernanke could indicate that further stimulus may be needed when he speaks at an economic symposium in Jackson Hole, Wyoming, on Friday.

Elsewhere, the Canadian dollar was also up against the euro, with EUR/CAD slipping 0.18% to hit 1.4231.

Earlier in the day, the Ifo Institute said that its index of German business climate fell more-than-expected in August, dropping to 108.7 from 112.9 in July. Economists had forecast a decline to 111.0.

Also Wednesday, official data showed that new industrial orders fell 0.7% in June, after a 3.6% rise in May, the sharpest monthly fall since September 2010.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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