USD/CAD rises after U.S., Canada data

The U.S. dollar rose against its U.S. counterpart on Tuesday, as higher-than-expected U.S. inflation data lent support to the greenback, although an upbeat manufacturing sales report from Canada still supported demand for the loonie.

USD/CAD hit 1.1007 during European afternoon trade, the pair's highest April 7; the pair subsequently consolidated at 1.1002, gaining 0.37%.

The pair was likely to find support at 1.0919, the low of April 11 and resistance at 1.1070, the high of April 1.

Official data showed that U.S. consumer price inflation rose 0.2% in March, exceeding expectations for a 0.1% gain, after a 0.1% uptick the previous month.

Core consumer price inflation, which excludes food and energy, rose 0.2% last month, more than the expected 0.1% increase, after a 0.1% gain in February.

A separate report showed that the Empire State manufacturing index fell to 1.3 this month, from a reading of 5.6 in March, compared to expectations for a rise to 8.2.

In Canada, data showed that manufacturing sales increased by 1.4% in February, exceeding expectations for a 1% rise. Manufacturing sales in January were revised down to a 0.8% gain from a previously estimated 1.5% advance.

The loonie was lower against the euro, with EUR/CAD rising 0.29% to 1.5192.

Also Tuesday, data showed that the ZEW index for German economic sentiment fell to an eight-month low of 43.2 this month, from a reading of 46.6 in March. Analysts had expected the index to decline to 45.0 in April.