Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Monday, as a rebound in oil prices lent support to the commodity-related Canadian currency, although hopes for an upcoming U.S. rate hike still underpinned the greenback.
USD/CAD hit 1.3226 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3250, declining 0.35%.
The pair was likely to find support at 1.3183, Friday’s low and resistance at 1.3314, Friday’s high and a seven-month peak.
The Canadian dollar strengthened as oil prices moved higher on Monday, after Saudi Arabia's energy minister said he was optimistic a production deal could be reached by November.
The greenback had initially weakened after the U.S. Labor Department said on Friday that the economy added 156,000 jobs in September, compared to expectations for 175,000.
The report also showed that the unemployment rate ticked up to 5.0% last month from 4.9% in August.
However, demand for the U.S. dollar remained supported as the disappointing jobs data was not expected to prevent the Federal Reserve from raising interest rates later this year.
The loonie was also higher against the euro, with EUR/CAD retreating 0.79% to 1.4777.