Investing.com - The U.S. dollar erased losses against its Canadian counterpart on Friday, as downbeat Canadian employment data pressured the loonie, although data showing that the U.S. economy added less jobs than expected last month limited the greenback's gains.
USD/CAD pulled away from 1.0841, the session low, to hit 1.0892 during European afternoon trade, up 0.17%.
The pair was likely to find support at 1.0817, Thursday's low and resistance at 1.0941, the high of September 3.
Official data showed that the number of employed people in Canada declined by 11,000 last month, confounding expectations for an increase of 10,000. For July, the change in the number of employed people was revised to a 41,500 gain from a previously estimated 41,700 increase.
The report also showed that Canada's unemployment rate remained unchanged at 7.0% in August, in line with expectations.
In the U.S., the Department of Labor said that the economy added 142,000 jobs in August, less than the expected increase of 225,000. The number of jobs added in July was revised to a 212,000 increase from a previously estimated rise of 209,000.
The report also showed that the U.S. unemployment rate ticked down to 6.1% last month, from 6.2%, in line with expectations.
The data came a day after the ADP nonfarm payrolls report showed that the private sector added less jobs than expected in August, while a separate report showed that the number of people who filed for unemployment assistance in the U.S. last week rose more than anticipated.
The loonie was lower against the euro, with EUR/CAD rising 0.27% to 1.4109.