Investing.com - The U.S. dollar dropped to one-month lows against its Canadian counterpart on Friday, as the release of disappointing U.S. nonfarm payrolls data weighed on demand for the greenback, while a positive employment report from Canada lent support to the loonie.
USD/CAD hit 1.0961 during European afternoon trade, the pair''s lowest since March 6; the pair subsequently consolidated at 1.0970, retreating 0.60%.
The pair was likely to find support at 1.0911, the low of February 19 and resistance at 1.1070, the high of April 1.
In a report, the Department of Labor said the U.S. economy added 192,000 jobs in March, confounding expectations for a 200,000 increase. February''s figure was revised up to a 197,000 rise from a previously estimated 175,000 increase.
The private sector added 192,000 jobs last month, below expectations for a 195,000 rise, while February''s figure was revised up to 188,000 jobs added from a previously estimated 162,000 increase.
The report also showed that the U.S. unemployment rate remained unchanged at 6.7% last month, disappointing expectations for a downtick to 6.6%.
In Canada, official data showed that the economy added 42,900 jobs last month, exceeding expectations for a 21,500 rise, after a 7,000 decline in February.
Canada''s unemployment rate declined to 6.9% in March, from 7% in February. Analysts had expected the unemployment rate to remain unchanged last month.
The loonie was higher against the euro, with EUR/CAD declining 0.59% to 1.5052.
In the euro zone, official data earlier showed that German factory orders rose rose 0.6% in February, exceeding expectations for a 0.1% gain. Factory orders in January were revised down to a 0.1% increase from a previously estimated 1.2% rise.
But the single currency remained under pressure after European Central Bank President Mario Draghi played down the risk of deflation in the euro zone on Thursday, but added that the bank has not ruled out further policy action, including quantitative easing.
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