Forexpros - The U.S. dollar was trading close to a three-and-a-half month low against the Canadian dollar on Wednesday, as the pair remained rangebound ahead of a keenly anticipated speech by Federal Reserve Chairman Ben Bernanke later in the week. USD/CAD hit 0.9867 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9868, slipping 0.14%. The pair was likely to find support at 0.9841, Tuesday’s low and a three-and-a-half month low and resistance at 0.9897, the session high. Earlier Wednesday, the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%. Investors remained cautious ahead of a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures. In Canada, official data showed that the industrial product price index fell 0.5% in July, defying expectations for a 0.5% increase, while the raw material price index rose 0.9%, disappointing expectations for a 2.0% increase. The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.29% to 1.2380. Later in the day, the U.S. was to release an industry report on pending home sales.

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