Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Monday, as a rebound in oil prices lent support to the Canadian currency, although Friday’s upbeat U.S. jobs data continued to underpin the greenback.
USD/CAD hit 1.3142 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3159, slipping 0.11%.
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 strengthened mildly as oil prices moved back higher on Monday, amid renewed hopes for an agreement among exporters to freeze output.
But gains were expected to remain limited after Statistics Canada reported that building permits dropped 5.5% in June, confounding expectations for a 1.5% rise. Building permits fell 2.1% in May, whose figure was revised from a previously estimated 1.9% slide.
The greenback had hit a one-and-a-half week high against the its Canadian rival on Friday after the Labor Department said the U.S. economy added 255,000 jobs last month, well above expectations for 180,000.
Meanwhile, the unemployment rate held steady at 4.9%, as more people entered the labor market.
The report also showed that average hourly earnings rose month-on-month by 0.3%, beating expectations for a 0.2% gain. They were up 2.6% on the year.
The upbeat data reignited speculation that the Federal Reserve will lift interest rates this year.
The loonie was fractionally higher against the euro, with EUR/CAD easing 0.09% to 1.4582.