Investing.com - The U.S. dollar was higher against its Canadian counterpart on Wednesday, even after data showed that U.S. nonfarm private employment rose less-than-expected in January as market sentiment remained under pressure amid concerns over Greece.
USD/CAD hit 1.2491 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2488, advancing 0.60%.
The pair was likely to find support at 1.2352, Tuesday's low and resistance at 1.2644, Tuesday's high.
In a report, payroll processing firm ADP said non-farm private employment rose by 213,000 last month, below expectations for an increase of 225,000.
The economy created 253,000 jobs in December, whose figure was upwardly revised from a previously reported 241,000.
Meanwhile, investors remained cautious amid fresh concerns over Greece, following reports that the European Central Bank is unwilling to back government plans to renegotiate the terms of the country’s €140 billion bailout.
The commodity-linked Canadian dollar was also hit as crude oil prices dropped nearly 4% as investors locked in gains from a rally which took prices 19% higher over the past four sessions.
The loonie was also lower against the euro, with EUR/CAD edging up 0.16% to 1.4277.
Also Wednesday, data showed that the euro zone private sector expanded at the fastest pace in six months in January.
The euro zone composite purchasing managers’ index, which measures activity in the region’s manufacturing and services sectors rose to 52.6 up from a preliminary estimate of 52.2 and a final reading of 51.4 in December.
Output growth expanded in Germany, Italy and Spain, but the downturn in the French economy extended into its ninth month.
A separate report showed that euro zone retail sales rose 2.8% in December from a year earlier, the strongest increase in nearly eight years.
Later in the day, the Institute of Supply Management was to release data on non-manufacturing activity, while Canada was to publish its Ivey PMI.