Forex - USD/CAD falls to fresh 3-week low amid low trade volume

Forex Pros – The Canadian dollar rallied against its U.S. counterpart on Monday, advancing to a fresh 3-week high, amid low trade volume as markets in the U.S. and Canada were closed for the Labor Day holiday.

USD/CAD hit 1.0345 during European afternoon trade, the pair’s lowest since August 19; the pair subsequently consolidated at 1.0346, shedding 0.40%.

The pair was likely to find support at 1.0247, the low of August 19, and resistance at 1.0568, Friday’s high.

The loonie rallied against the U.S. dollar on Friday, after official U.S. data showed that nonfarm payroll employment fell less-than-expected in August, declining by a seasonally adjusted 54,000, after falling a revised 54,000 in July.

Analysts had expected non-farm payrolls to decline by 101,000 in August.
 
The data also showed that private-sector payroll employment continued to trend upwards, adding 67,000 jobs in August, after adding a revised 107,000 jobs in July.

The loonie was also up against the euro, with EUR/CAD shedding 0.54% to hit 1.3325.

On Wednesday, the Bank of Canada is expected to announce its benchmark interest rate.