Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, pulling away from an 11-year high as demand for the greenback weakened ahead of Friday's U.S. nonfarm payrolls report.
USD/CAD hit 1.3106 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3134, edging down 0.16%.
The pair was likely to find support at 1.3077, Monday's low and resistance at 1.3178, Monday's high and an 11-year high.
The dollar has been boosted by expectations that the improving U.S. economy will prompt the Fed to raise short term interest rates in the coming months, possibly as early as September.
Investors were looking to the government nonfarm payrolls report, due to be released on Friday. The consensus forecast is that the report will show jobs growth of 215,000 last month.
Monthly jobs gains above 200,000 are seen by economists as consistent with strong employment growth.
The dollar softened following the release of disappointing U.S. economic reports on Monday.
Official data showed that U.S. consumer spending slowed in June and a separate report showing that manufacturing activity moderated in July.
Another report showed that U.S. construction spending rose at the slowest rate in five months in June.
The loonie was steady against the euro, with EUR/CAD at 1.4407.