Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Friday, boosted by the release of upbeat U.S. employment data and growing hopes for a December rate hike by the Federal Reserve.
USD/CAD hit 1.3392 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3365, adding 0.13%.
The pair was likely to find support at 1.3288, Thursday's low and resistance at 1.3437, the high of November 23 and a one-month high.
The Labor Department said the U.S. economy added 211.000 jobs in November, beating expectations for an increase of 200.000. The U.S. created 298.000 jobs in October, whose figure was revised from a previously estimated 271.000.
The U.S. unemployment rate remained unchanged at 5.0% last month, in line with expectations.
Average hourly earnings rose 0.2% in November, in line with market expectations.
The data came a day after Fed Chair Janet Yellen strongly indicated to Congress on Thursday that Fed policymakers are likely to vote to raise interest rates at its meeting in two weeks, barring any major shocks to the global economy.
"I currently judge that US economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market," she said.
A separate report showed that the U.S. trade deficit widened to $43.89 billion in October from a revised deficit of $42.46 billion the previous month. Analysts had expected the trade deficit to narrow to $40.50 billion in October.
At the same time, Statistics Canada reported that the number of employed people declined by 35.700 in November, compared to expectations for a 10.000 drop and after an increase of 44.400 the previous month.
Canada's unemployment rate ticked up to 7.1% last month from 7.0% in October. Analysts had expected the unemployment rate to remain unchanged in November.
Data also showed that Canada's trade deficit widened to C$2.76 billion in October from a revised deficit of C$2.32 billion the previous month. Analysts had expected the trade deficit to narrow to C$1.70 billion in October.
The loonie was steady against the euro, with EUR/CAD at 1.4609.