On Monday the U.S. dollar declined against its Canadian counterpart, stepping off a six-year peak after data showed that
U.S. personal spending declined for the first time in 20 months in
December.
USD/CAD hit 1.2635 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2628, declining 0.82%. Cable was likely to find support at 1.2506, the low of January 29 and resistance at 1.2798, the high of January 30 and a six-year peak.
The Commerce Department said in a report U.S. that personal spending fell 0.3% in December, worse than expectations for a decline of 0.2%. Personal spending rose 0.5% in November, whose figure was revised down from a previously reported gain of 0.6%.
The data also indicated personal income rose 0.3% in December, above forecasts for 0.2% and after gaining 0.3% in November.
Sentiment on the greenback became fragile on Friday after the Commerce Department said in a report that the U.S. economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
The loonie was also pressured after Statistics Canada reported on Friday that the country's gross domestic product fell 0.2% in November, compared to expectations for a 0.1% downtick and after a 0.3% gain in October.
The Canadiab dollar was higher against the euro, with EUR/CAD retreating 0.59% to 1.4286.
Later in the day, market players expect the Institute of Supply Management to release data on manufacturing activity.
