The U.S. dollar trimmed gains against its Canadian counterpart on Monday,
after the release of upbeat Canadian data, although fresh expectations for a 2016 rate hike by the Federal Reserve continued to support the greenback.
USD/CAD pulled back from 1.2936, the pair’s highest since August 15, to hit 1.2917 during early U.S. trade, still up 0.37%.
The pair was likely to find support at 1.2793, the low of August 16 and resistance at 1.2976, the high of August 15.
Statistics Canada reported on Monday that wholesale sales rose 0.7% in June, exceeding expectations for a 0.5% gain. Wholesale sales increased by 1.9% in May, whose figure was revised from a previously estimated 1.8% rise.
But the dollar remained supported after San Francisco Fed President John Williams on Thursday signaled support for a September rate increase.
“In the context of a strong domestic economy with good momentum, it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later,” he said.
Minutes of the Federal Reserve’s July policy meeting published earlier in the week showed committee members remained divided on the timing of the next rate hike, although there is general agreement that more data is needed before such a move.