US dollar trimmed earlier gained positions and slid to session lows against its Canadian counterpart on Tuesday, following an official report to show retail sales in Canada rose significantly more than projected during May.
USD/CAD registered a session low at 1.0297 at 12:36 GMT, after which the pair consolidated at 1.0308, still down by 0.27% for the day. Support was likely to be received at June 20th low, 1.0265, while resistance was to be encountered at current session high, 1.0350.
Minutes ago it was reported that Canadian retail sales rose at almost five times faster pace than expected during the month of May, as that was the largest monthly climb since March 2010. Overall results were influenced mainly by automobile sales. Retail sales increased by 1.9% to 40.42 billion CAD during May on a monthly basis, far exceeding projections of a 0.4% rise, while in April sales results were revised up to 0.2% from 0.1% previously. Retail Sales ex autos, which is a vital component in evaluating the countrys Gross Domestic Product, rose by 1.2% in May, as that was the best performance of the indicator since June 2011. Preliminary estimates pointed a 0.4% increase.
Meanwhile, the US dollar lost ground widely during the Asian trade session after data on Monday stated that Existing Home Sales in the United States decreased by 1.2% to a seasonally adjusted annual level of 5.08 million units during June. This data dampened expectations of Federal Reserve Bank paring back its Quantitative Easing soon.
Elsewhere, Canadian dollar advanced against the euro, as EUR/CAD pair lost 0.20% for the day, trading at 1.3603 at 13:02 GMT. GBP/CAD cross also reduced its value, sliding 0.32% for the day, trading at 1.5828 at 13:04 GMT.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
