Investing.com - The U.S. dollar fell against its Canadian counterpart on Tuesday, as investors locked in profits from the greenback's rally to five-year highs earlier in the session.
USD/CAD hit session highs of 1.1501, the highest since July 2009, before pulling back to 1.1446, down 0.29% for the day.
The pair was likely to find support at 1.1374, the low of December 5 and resistance at 1.1724.
The greenback remained broadly supported after the Labor Department reported last Friday that the U.S. economy added 321,000 jobs in November, far more than the 225,000 forecast by economists and the largest monthly increase in almost three years.
The strong data fuelled to expectations for the Federal Reserve to raise interest rates mid-2015, compared to expectations for September 2015 before the report.
Earlier Tuesday, the Wall Street Journal reported that Fed officials are looking at dropping an assurance that interest rates will stay low for a "considerable time", in its statement, following its upcoming policy meeting next week.
Meanwhile, the Canadian dollar remained under pressure after data on Friday showed that the local economy unexpectedly shed 10,700 jobs last month, following two months of strong jobs growth, and the unemployment rate ticked up to 6.6% from 6.5% in October.
The loonie was lower against the euro, with EUR/CAD rising 0.34% to 1.4187.
The euro found some support after official data earlier showed that Germany's trade surplus widened to €20.6 billion in October from €18.6 billion in September, whose figure was revised up from a previously estimated trade surplus of €18.5 billion.
Analysts had expected the trade surplus to widen to €19.2 billion in October.