Investing.com - The U.S. moved higher against its Canadian counterpart on Monday, as eyed the Federal Reserve’s policy meeting scheduled this week, while declining oil prices dampened demand for the commodity-related Canadian currency.
USD/CAD hit 1.2826 during early U.S. trade, the pair’s highest since June 7; the pair subsequently consolidated at 1.2822, up 0.31%.
The pair was likely to find support at 1.2655, Friday’s low and resistance at 1.2839, the high of June 7.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.
The Canadian dollar weakened as oil pricesl moved sharply lower on Monday, weighed by the strength of the U.S. dollar.
Markets were also jittery after weak economic data out of China and Japan on Monday hit the outlook for Asian economic growth.
Data from China showed that growth in fixed-asset investment fell below 10% for the first time since 2000 in the January to May period.
Another report showed that Japan's business survey index of sentiment at large manufacturers fell to minus 11.1 in the second quarter, from a reading of minus 7.9 in the first three months of the year.
The loonie was lower against the euro, with EUR/CAD rising 0.29% to 1.4422.