Investing.com - The U.S. dollar fell against its Canadian counterpart on Monday, as investors locked in profits from the greenback's recent upward trend and as upbeat housing data from Canada boosted demand for the local currency.
USD/CAD hit 1.2397 during early U.S. trade, the pair's lowest since June 3; the pair subsequently consolidated at 1.2411, slipping 0.22%.
The pair was likely to find support at 1.2362, the low of June 2 and resistance at 1.2504, the high of June 4.
The dollar strengthened broadly after the Labor Department reported on Friday that the U.S. economy added 280,000 jobs in May, ahead of economists forecast for 220,000.
Hourly earnings increased 0.3% in May, after a 0.2% increase in April.
The upbeat data, particularly the pick-up in wage growth underlined the view that the economy is on track to rebound after a weak first quarter and bolstered expectations that the Federal Reserve could start to hike interest rates at its September policy meeting.
Elsewhere, Statistics Canada said on Monday that building permits increased by 11.6% in April, beating expectations for a 3.4% gain. The change in building permits for March was revised to a 13.6% rise from a previously estimated 11.6% increase.
Another report also showed that housing starts rose by 201,700 units in May, compared to expectations for an increase of 185,000. April's figure was revised to a 183,000 gain from a previously estimated 181,800 rise.
The loonie was lower against the euro, with EUR/CAD climbing 0.57% to 1.3906.
Official data earlier showed that German industrial production rose 0.9% in April, exceeding expectations for a 0.5% gain. The change in industrial production for March was revised to 0.4% downtick from a previously estimated 0.5% fall.
But investors remained cautious as European Commission President Jean-Claude Juncker urged Greek Prime Minister Alexis Tsipras over the weekend to come up with alternative economic reforms "swiftly" so that negotiations could continue this week.
Athens delayed a key debt payment to the International Monetary Fund on Friday after Tsipras rejected the proposed reforms put forward by the EC as “absurd”.