Investing.com - The broadly stronger U.S. dollar advanced to 21-month highs against the Canadian dollar on Tuesday as investors looked ahead to Friday’s U.S. nonfarm payrolls report.
USD/CAD hit 1.0577 during early U.S. trade, the pair’s highest since October 2011; the pair subsequently consolidated at 1.0556, gaining 0.58%.
The pair was likely to find support at 1.0490, the session low and resistance at 1.0650.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.
Stronger U.S. manufacturing data on Monday boosted optimism over the economic outlook.
The Institute for Supply Management said its manufacturing purchasing managers’ index rose to 50.9 in June, recovering from a shock contraction in May.
However, the employment component of the index contracted for the first time since September 2009.
The loonie, as the Canadian dollar is also known, was fractionally lower against the euro, with EUR/CAD inching up 0.08% to 1.3723.
The U.S. was to produce official data on factory orders later in the trading day.
