USD/CAD slightly higher after US, Canadian data

Having fallen to session lows earlier on trading Tuesday, the US dollar managed to regain certain ground against its Canadian peer, after the release of mixed data out of Canada and the United States.

USD/CAD distanced from the previously recorded session low at 1.0272 to reach a session high at 1.0309 at 14:26 GMT. Support was likely to be found at September 20th low, 1.0261, while resistance was to be encountered at September 20th high, 1.0310.

It became clear that Canadian retail sales rose in July, recovering from the sudden drop in June. A major factor behind this result was the overall increase in sales at gas stations. The total value of retail sales increased by 0.6% to 40.30 billion CAD in July, meeting preliminary estimates. Junes 0.6% drop in sales was a result mostly of the flood in South Alberta during the month as well as the strike in the sector of construction in Quebec. Following this data, the loonie managed to climb to its highest point against the greenback since September 20th.

In the mean time, in the United States, house prices continued to rise in July, as S&P and Case-Shiller said that their index of house prices in 20 large US cities climbed 12.39% on annual basis, almost in line with expectations. The index advanced 12.07% in June annually. In the report, S&P and Case-Shiller used a bit cautious tone in their projections regarding future house price development in the country.

Additionally, US consumer confidence decreased at a faster pace than projected in September, as consumer prospects in the coming months appeared to be more dimmed, according to data by the Conference Board. The index, gauging consumer confidence in the United States, slowed down to 79.7 in September from the revised up reading of 81.8 in August. Projections pointed a lesser drop, to 80.0. The sub-index of economic expectations in the coming months also demonstrated a slow down in value, falling to 84.1 in September from 89.0 in August. US consumers remained more optimistic about the current economic conditions, as the corresponding index rose to a value of 73.2 in September from 70.9 a month ago.

Elsewhere, the Canadian dollar was lower against the euro, with EUR/CAD cross gaining 0.13% on a daily basis to trade at 1.3898 at 15:10 GMT.