Investing.com - The U.S. dollar fell to almost five-week lows against the Canadian dollar on Tuesday after the release of stronger-than-forecast Canadian retail sales data for May.
USD/CAD hit 1.0299 during early U.S. trade, the lowest since June 20; the pair subsequently consolidated at 1.0309, shedding 0.22%.
The pair was likely to find support at 1.0265, the low of June 20 and resistance at 1.0348, the session high.
Statistics Canada said retail sales rose by a seasonally adjusted 1.9% in May, the biggest increase in more than three years and well above expectations for a 0.4% gain. Retail sales rose by an upwardly revised 0.2% in April.
Core retail sales, which exclude automobile sales, rose by a seasonally adjusted 1.2% in May, blowing past expectations for a 0.1% increase.
The report said core sales fell by 0.2% in April, down from a previously reported 0.3% decline.
The greenback's losses were limited amid expectations that the Federal Reserve will start to scale back its asset purchase program later this year.
The loonie, as the Canadian dollar is also known, was also higher against the euro and the yen, with EUR/CAD down 0.18% to 1.3601 and CAD/JPY up 0.51% to 96.93.
In Japan, the government upgraded its assessment of the economy for the third consecutive month in July, saying "areas of self-sustaining recovery can be observed."
In its monthly economic report, the government also said consumer prices are "leveling off," indicating that deflation is abating.
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