Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Tuesday after data showed that the U.S. economy added fewer than expected jobs in September and Canadian retail sales rose in August.
USD/CAD hit 1.0282 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0293, slipping 0.10%.
The pair was likely to find support at 1.0276, the low of October 18 and resistance at 1.0331, the high of October 17.
The greenback slid after the Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The disappointing data reinforced expectations that the Federal Reserve would postpone plans to start tapering its stimulus program until at least the beginning of next year.
The dollar dropped sharply late last week as concerns over the impact of the 16-day shutdown on the U.S. economic recovery saw investors reevaluate the possible timescale for a reduction in Fed stimulus.
Meanwhile, Statistics Canada said Tuesday that retail sales rose 0.2% in August, slightly below forecasts for a 0.3% gain. Core retail sales rose 0.4%, better than expectations for a 0.2% increase.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.37% to 1.4147.
USD/CAD hit 1.0282 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0293, slipping 0.10%.
The pair was likely to find support at 1.0276, the low of October 18 and resistance at 1.0331, the high of October 17.
The greenback slid after the Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The disappointing data reinforced expectations that the Federal Reserve would postpone plans to start tapering its stimulus program until at least the beginning of next year.
The dollar dropped sharply late last week as concerns over the impact of the 16-day shutdown on the U.S. economic recovery saw investors reevaluate the possible timescale for a reduction in Fed stimulus.
Meanwhile, Statistics Canada said Tuesday that retail sales rose 0.2% in August, slightly below forecasts for a 0.3% gain. Core retail sales rose 0.4%, better than expectations for a 0.2% increase.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.37% to 1.4147.