NEW YORK (Forex News Now) – The Canadian dollar erased earlier gains versus its U.S. counterpart on Wednesday, amid expectations of further monetary easing from the Federal reserve after disappointing U.S. data.
In late U.S. currency market trading, USD/CAD hit 1.0318, up 0.2 percent on the day, after rising from 1.024, a 2-day low.
Speculation over additional measures by the Fed to tackle the sluggish U.S. economy also sent gold prices to record highs in Europe, as investors sought bullion as an alternative asset.
According to intraday analysis, USD/CAD was likely to touch support around the low of Sept. 22, 1.0191, and encounter immediate resistance around the high of Sept. 23 1.0379.
The loonie’s losses also came after official data showed that prices of raw materials purchased by Canadian producers rose more than forecast in August.
Elsewhere, the Canadian dollar fell versus the euro: EUR/CAD traded at 1.4079, up 0.64 percent.