Greenback slips vs loonie after disappointing report on U.S. durable goods orders

The greenback declined against its Canadian counterpart on Tuesday, getting off a nearly six-year peak as a disappointing report on U.S. durable goods orders dampened demand for the greenback, while markets eyed the Federal Reserve's upcoming policy statement.

USD/CAD hit 1.2431 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2417, declining 0.45%. The cable was likely to find support at 1.2355, the low of January 23 and resistance at 1.2501, the session high and a nearly six-year peak.

The U.S. Commerce Department said in a report that total durable goods orders, which include transportation items, dropped 3.4% last month, compared to expectations for a gain of 0.5%.

Orders for durable goods in November were revised down to a 2.1% drop from a previously reported decline of 0.9%.

Core durable goods orders, excluding volatile transportation items, declined by 0.8% in December, disappointing forecasts for a 0.6% gain. Core durable goods orders declined by 1.3% in November, whose figure was revised from previously reported drop of 0.7%.

The loonie was lower against the euro, with EUR/CAD gaining 0.79% to 1.4122, Investing.com reports.

Investors were looking ahead to the outcome of Wednesday’s Fed meeting, with the bank expected to stick to its pledge to be patient on tightening monetary policy.

Later in the day, the U.S. was to release private sector reports on consumer confidence and new home sales.