Investing.com - The U.S. dollar dropped against its Canadian counterpart on Tuesday, as sentiment on the greenback weakened after U.S. employment data released on Friday added to uncertainty over the Federal Reserve's next policy moves.
USD/CAD hit 1.3213 during early U.S. trade, the pair's lowest since September 4; the pair subsequently consolidated at 1.3209, declining 0.74%.
The pair was likely to find support at 1.3133, the low of September 3 and resistance at 1.3309, Monday's high.
Sentiment on the greenback remained fragile after Friday's U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate ticked down to 5.1%, its lowest level since April 2008.
But the Canadian dollar's gains were limited as oil markets continued to display weakness. Crude oil futures for October delivery were down 1.45% at $45.37 at the open of the U.S. trading session.
The loonie was higher against the euro, with EUR/CAD retreating 0.63% to 1.4764.