Investing.com - The U.S. dollar climbed to a two-day high against its Canadian counterpart on Wednesday, after data showing that the U.S. private sector added more jobs than expected in March further diminished expectations for a fresh round of easing by the Federal Reserve.
USD/CAD hit 0.9968 during early U.S. trade, the pair’s highest since Monday; the pair subsequently consolidated at 0.9958, gaining 0.50%.
The pair was likely to find support at 0.9903, the session low and resistance at 0.9989, Monday’s high.
Payrolls processing firm ADP reported earlier that the U.S. private sector added 209,000 jobs last month, outstripping expectations for an increase of 200,000.
February’s figure was revised up to a gain of 230,000 from a previously reported increase of 216,000.
The data came one day after the minutes of the Fed’s March meeting showed that policymakers will refrain from launching a third round of quantitative easing unless the rate of U.S. growth falters or inflation drops below the central bank’s 2% targeted rate.
Meanwhile, market sentiment was hit by fresh concerns over the debt crisis in the euro zone, after a poorly received auction of Spanish government debt earlier saw the country’s borrowing costs rise.
Risk appetite was blunted by concerns over the outlook for growth in the euro zone after a flurry of weak economic data indicated that the bloc may be entering a technical recession.
The Canadian dollar also came under pressure from weaker oil prices, as crude oil contracts for delivery in May tumbled 1.26% on the New York Mercantile Exchange to trade at USD102.69 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.37% to hit 1.3066.
Market participants were looking ahead to data from the Institute of Supply Management on U.S. service sector growth later in the day. In addition, U.S. Treasury Secretary Timothy Geithner was due to speak.
USD/CAD hit 0.9968 during early U.S. trade, the pair’s highest since Monday; the pair subsequently consolidated at 0.9958, gaining 0.50%.
The pair was likely to find support at 0.9903, the session low and resistance at 0.9989, Monday’s high.
Payrolls processing firm ADP reported earlier that the U.S. private sector added 209,000 jobs last month, outstripping expectations for an increase of 200,000.
February’s figure was revised up to a gain of 230,000 from a previously reported increase of 216,000.
The data came one day after the minutes of the Fed’s March meeting showed that policymakers will refrain from launching a third round of quantitative easing unless the rate of U.S. growth falters or inflation drops below the central bank’s 2% targeted rate.
Meanwhile, market sentiment was hit by fresh concerns over the debt crisis in the euro zone, after a poorly received auction of Spanish government debt earlier saw the country’s borrowing costs rise.
Risk appetite was blunted by concerns over the outlook for growth in the euro zone after a flurry of weak economic data indicated that the bloc may be entering a technical recession.
The Canadian dollar also came under pressure from weaker oil prices, as crude oil contracts for delivery in May tumbled 1.26% on the New York Mercantile Exchange to trade at USD102.69 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.37% to hit 1.3066.
Market participants were looking ahead to data from the Institute of Supply Management on U.S. service sector growth later in the day. In addition, U.S. Treasury Secretary Timothy Geithner was due to speak.