Investing.com - The U.S. dollar erased gains against its U.S. counterpart on Friday, after data showed that U.S. worker pay rose at the slowest pace since 1982 in the last quarter, although downbeat economic growth data from Canada limited the local currency's gains.
USD/CAD pulled back from 1.3088, the pair's highest since July 24, to hit 1.2955 during early U.S. trade, down 0.35%
The pair was likely to find support at 1.2858, the low of July 29 and resistance at 1.3102, the high of July 24 and an 11-year high.
The Labor Department reported on Friday that U.S. employment costs rose 0.2%, the lowest gain since 1982, compared to expectations for a 0.6% increase. U.S. employment costs rose 0.7% in the three months to March.
The report came a day after the Commerce Department said that U.S. gross domestic product expanded at an annual rate of 2.3% in the three months to June. First quarter growth was revised up to 0.6% from a previously reported contraction of 0.2%.
Although economists had forecast growth of 2.6% the report still indicated that the economy is on a solid footing.
Meanwhile, Statistics Canada reported on Friday that the country's GDP fell 0.2% in May, disappointing expectations for a 0.1% rise, after a 0.1% downtick the previous month.
The loonie was sharply lower against the euro, with EUR/CAD rallying 1.19% to 1.4378.