USD/CAD slightly higher after mixed US data

US dollar was slightly higher against its Canadian peer on Friday, following the release of a series of mixed economic data out of the United States.

USD/CAD bounced off its lowest point today at 1.0325, recorded at 12:40 GMT, after which consolidation followed at 1.0336, gaining 0.11% on a daily basis. Support was likely to be received in the area 1.0300-1.0320, while resistance was to be encountered in the 1.0330-1.0350 zone.

Today the Department of Commerce reported that retail sales in the United States rose by 0.2% in August, less than projections of a 0.5% advance, but yet August’s sales appeared stronger than projected in June and July. July’s sales figure was revised up to a 0.4% gain from a 0.2% gain previously.

A separate report showed that the index of producer prices (PPI) in the country increased by 0.3% in August, supported by higher fuel and food costs, after prices remained flat in July. The core producer price index (PPI), which excludes volatile components such as food and energy, was unchanged in August, after the 0.1% uptick, registered in July.

The index of business inventories in the United States gained 0.4% in July compared to June, following a revised up 0.1% increase in the preceding month. Preliminary estimates pointed a 0.2% climb.

In addition, it became clear that US consumers showed less optimism in the beginning of September. The preliminary value of the index of consumer confidence in the United States decreased considerably in early September, reaching a reading of 76.8 compared with 82.1 in late August. The index stood at 85.1 in late July, marking the highest point since the end of recession. Experts had projected that the index will remain almost unchanged at a value of 82.0. This dampened sentiment among consumers in September could restrain their will to spend during the current month.

The above-mentioned data points came, as market players began focusing on the two-day meeting on policy by the Federal Reserve Bank next week, as most experts projected a possible reduction of scale of stimulus to 75 billion USD from the current monthly pace of 85 billion USD of bond purchases.

Meanwhile, the loonie, as Canadian dollar is also known, was unchanged against the euro, with EUR/CAD cross trading at 1.4348 at 14:45 GMT.