Investing.com - The U.S. dollar rose against its Canadian counterpart on Tuesday, as the greenback recovered from recent losses posted after downbeat U.S. economic reports, although rising oil prices lent some support to the Canadian currency.
USD/CAD hit 1.3159 during early U.S. trade, the pair's highest since October 30; the pair subsequently consolidated at 1.3143, gaining 0.37%.
The pair was likely to find support at 1.3036, the low of October 23 and resistance at 1.3240, the high of October 29.
The greenback weakened after the Institute for Supply Management said on Monday that its index of purchasing managers fell to a more than two-year low of 50.1 last month from a reading of 50.2 in September.
The dollar had aleady lost ground after data last Thursday showed that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.
Investors were turning their attention to Friday's U.S. nonfarm payrolls report for indications on the likelihood of a December rate hike.
The Federal Reserve left rates on hold last week but indicated that it could still raise interest rates for the first time since 2006 at its December meeting.
Meanwhile, the commodity-linked Canadian dollar found some support as crude oil futures for December delivery rallied 1.76% to $46.96 at the open of U.S. trading.
The loonie was higher against the euro, with EUR/CAD slipping 0.11% to 1.4408.
In the euro zone, data earlier showed that the number of unemployed people in Spain increased by 82.300 in October, more than the expected 70.300 rise and after an increase of 26.100 the previous month.