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Forex - USD/CAD reapproaches more than 3-month lows after U.S. data

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Investing.com -

Investing.com - The U.S. dollar declined against its Canadian counterpart on Wednesday, reapproaching a nore than three-month low as data showing that U.S. non-farm private employment rose less than expected in April fuelled concerns over the strength of the U.S. labor market.

USD/CAD hit 1.1989 during early U.S. trade, the pair's lowest since April 29; the pair subsequently consolidated at 1.2011, retreating 0.46%.

The pair was likely to find support at 1.1931, the low of January 20 and resistance at 1.2132, Tuesday's high.

In a report, payroll processing firm ADP said non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000. The economy created 175,000 jobs in March, whose figure was downwardly revised from a previously reported increase of 189,000.

A separate report showed that U.S. non-farm business sector labor productivity decreased by 1.9% in the first three months of the year, worse than expectations for a decline of 1.8%. The preceding quarter's figure was revised to a drop of 2.1% from a previously reported fall of 2.2%.

The report also said unit labor costs increased by 5.0% in the first quarter, above forecasts for a gain of 4.3% and following rise of 4.2% in the fourth quarter.

The loonie was lower against the euro, with EUR/CAD rising 0.39% to 1.3552.

Also Wednesday, data showed that the euro area final composite purchasing managers' index came in at 53.9 in April, up from a preliminary reading of 53.5 and just below March's 11-month high of 54.0.

A separate report showed that euro zone retails sales fell 0.8% in March, worse than forecasts for a 0.7% decline.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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