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Forex- USD/CAD lower as oil heads higher

Published 12/09/2012, 09:42 PM
Updated 12/09/2012, 09:43 PM
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Investing.com- The U.S. dollar extended losses against its Canadian counterpart in Asian trading Monday as crude oil futures traded slightly higher.

In Asian trading Monday, USD/CAD was lower by 0.15% at 0.9872. Support for the pair is seen at 0.9868 and close by at 0.9867. Next resistance is 0.9872 and then again at 0.9873.

The loonie is advancing against the greenback for a fifth consecutive day after rising last Friday on bullish jobs data out of both countries. The U.S. Labor Department said employers there added 146,000 new jobs last month and that the unemployment rate dipped to 7.7%.

In Canada, Statistics Canada said 59,300 jobs were added in November and that the unemployment rate there fell to 7.2% from 7.4%. The Canadian jobs number was the best in eight months and the unemployment rate is the lowest since June.

Also lifting the Canadian dollar today are stronger oil prices. In Asian trading Monday, crude oil futures traded on the New York Mercantile Exchange for January delivery added 0.29% to USD86.17 per barrel. The contract traded as high as USD86.27 and as low as USD85.94 per barrel.

Crude got a lift after China said its industrial output jumped 10.% last month, good for an eight-month high, while industrial exports surged to a 10-month high. In another sign the world’s second-largest economy is in recovery mode, Chinese retail sales rose 14.9% last month, topping the consensus estimate of growth of 14.6%.

China is the world’s second-largest oil consumer and Canada is one of the world’s top non-OPEC producers of the commodity.

Elsewhere, EUR/CAD plunged 0.32% to 1.2740 while AUD/CAD dipped 0.29% to 1.0340. The Canadian dollar was also stronger against the yen as CAD/JPY was higher by 0.11% to 83.57. GBP/CAD was lower by 0.22% to 1.5824.



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