US dollar erased losses and re-to a new maximum of three months went against its Canadian counterpart on Tuesday, as lower oil prices weighed on demand for the Canadian currency related commodities and investors expected the statement next policy of the Federal Reserve.
USD / CAD pulled away from 1.3181, the session low, to hit 1.3212 during US morning trade Early and consistent for the day.
The pair was likely to find support 1.3121, Monday’s low and resistance at 1.3286, the high of March 28.
Oil prices moved sharply lower on Tuesday amid concerns about a global glut of crude and refined products.
Meanwhile, market participants looked next policy decision by the Fed on Wednesday, as a recent string of US data pbeat continued to support expectations of a rate hike by the US central bank In the near future.
While most investors expect the Fed to leave its monetary policy unchanged this week, could give clues on the timing of future rate increases.
The Canadian dollar remained stable against the euro, with EUR / CAD 1.4531.