Investing.com - The U.S. dollar declined against its Canadian counterpart on Wednesday, reapproaching a nore than three-month low as data showing that U.S. non-farm private employment rose less than expected in April fuelled concerns over the strength of the U.S. labor market.
USD/CAD hit 1.1989 during early U.S. trade, the pair's lowest since April 29; the pair subsequently consolidated at 1.2011, retreating 0.46%.
The pair was likely to find support at 1.1931, the low of January 20 and resistance at 1.2132, Tuesday's high.
In a report, payroll processing firm ADP said non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000. The economy created 175,000 jobs in March, whose figure was downwardly revised from a previously reported increase of 189,000.
A separate report showed that U.S. non-farm business sector labor productivity decreased by 1.9% in the first three months of the year, worse than expectations for a decline of 1.8%. The preceding quarter’s figure was revised to a drop of 2.1% from a previously reported fall of 2.2%.
The report also said unit labor costs increased by 5.0% in the first quarter, above forecasts for a gain of 4.3% and following rise of 4.2% in the fourth quarter.
The loonie was lower against the euro, with EUR/CAD rising 0.39% to 1.3552.
Also Wednesday, data showed that the euro area final composite purchasing managers' index came in at 53.9 in April, up from a preliminary reading of 53.5 and just below March's 11-month high of 54.0.
A separate report showed that euro zone retails sales fell 0.8% in March, worse than forecasts for a 0.7% decline.