Currency – The canadian dollar declined during a session calm

© Reuters. The canadian dollar declined during a session calm

The canadian dollar was slightly lower against its u.s. counterpart on Monday, while the ratio of jobs american the stronger than expected on Friday continued to support expectations of an interest rate increase.

The USD/CAD’s advance of 0.1% to 1.2861 at 09:22 AM ET (14:22 GMT), near a record high a week to 1.2878.

The demand for the dollar was supported after the ADP has indicated that the creation of non-agricultural employment has increased in September to 228.000, compared to an increase than 244,000 jobs last month. These figures exceed the consensus was calling for a creation of 200,000 jobs.

Average hourly earnings rose 0.2% in November, against forecasts for a rise of 0.3 per cent and after a decline of 0.1% last month.

The weakness of the data on wages did little to change expectations of a rate hike by the federal Reserve at its next meeting this week, but fears that moderate inflation could prompt the Fed to change its forecasts of rising interest rates in the future.

The aussie remained on the defensive after the Bank of Canada has maintained interest rates last Wednesday and tempered expectations of a rate hike in the coming months, despite a strong employment report in Canada for November.

The central bank raised its rates in July and in September for the first time in seven years, but has been more cautious on the outlook for the economy.

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