Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Tuesday, as oil prices bounced off session lows, although Friday’s upbeat U.S. jobs data continued to lend broad support to the greenback.
USD/CAD hit 1.3190 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3150.
The pair was likely to find support at 1.3005, Friday’s low and resistance at 1.3252, the high of July 27.
The commodity-related Canadian dollar found some support as oil prices regained some ground amid ongoing rumors of a potential agreement among exporters to freeze output.
Oil prices rallied to three-month highs on Monday following reports several OPEC members, including Venezuela, Ecuador and Kuwait, are now pushing for fresh talks on setting new limits for oil production this fall in an effort to stabilize the market.
However, market players remained uncertain whether the meeting would result in any concrete actions.
The greenback still remained broadly supported after upbeat U.S. nonfarm payrolls data boosted expectations for a rate hike by the Federal Reserve before the end of the year.
The Labor Department said on Friday that the U.S. economy added 255,000 jobs last month, well above expectations for 180,000.
Investors shrugged off preliminary data on Tuesday showing that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March.
The loonie was steady against the euro, with EUR/CAD at 1.4580.