Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Friday, but still remained close to a 12-1/2 year peak after the release of upbeat employment reports from both the U.S. and Canada.
USD/CAD hit 1.4059 during early U.S. trade, the session low; the pair subsequently consolidated 1.4095, edging down 0.13%.
The pair was likely to find support at 1.3969, the low of January 6 and resistance at 1.4171, Thursday’s high.
The U.S. Labor Department said the economy added 292.000 jobs in December, beating expectations for a rise of 200.000. The U.S. economy added 252.000 jobs in November, whose figure was revised from a previously estimated 211.000 gain.
The U.S. unemployment rate remained unchanged at 5.0% last month, in line with expectations.
The report also showed that average hourly earnings were flat in December, compared to expectations for a 0.2% rise, after an uptick of 0.2% the previous month.
The greenback also found support after China’s Securities Regulatory Commission suspended the market circuit breaker introduced only on Monday and after the People's Bank of China set a higher yuan guidance rate for the first time in nine days.
In Canada, data showed that the number of employed people rose by 22.800 in December, exceeding expectations for an increase of 10.000 and after a 35.700 drop the previous month.
Canada’s unemployment rate remained unchanged at 7.1% last month, in line with expectations.
A separate report showed that Canada’s building permits dropped by 19.6% in November, compared to expectations for a 3.0% decline.
The commodity-related Canadian dollar continued to be pressured lower by declining oil prices, as crude oil futures for February delivery were at $33.42 in early U.S. trade, close to the previous session’s 12-year trough of 32.10.
The loonie was sharply higher against the euro, with EUR/CAD dropping 0.65% to 1.5325.