TORONTO (Reuters) - The Canadian dollar was little changed against the U.S. currency on Tuesday, with hopes that Spain might soon accept a euro zone bailout offering some support as traders looked ahead to key North American employment data due on Friday.
Canadian and U.S. stocks and some commodities also firmed as investors decided news on Spain’s bailout plans was encouraging enough to warrant fresh buying. .TO.N
“There’s a lot of stuff ahead and not much today, so people will probably sit on their hands for now,” said Benjamin Reitzes, senior economist and foreign exchange strategist at BMO Capital Markets.
At 9:31 a.m. (1331 GMT), the Canadian dollar was at C$0.9827, or $1.0176, unchanged from its close on Monday.
Reitzes said the Canadian dollar would find support around C$0.9874 and the September 5 session low of C$0.9920. He saw resistance at last week’s high of C$0.9781.
The Canadian dollar firmed against Australia’s currency after the Reserve Bank of Australia cut interest rates to a three-year trough and left the door ajar for more easing.
It climbed as high as C$1.0103 to the Australian dollar, or 98.98 Australian cents, its strongest level since September 11.
Both Canada and the United States release monthly employment figures on Friday, while the European and Japanese central banks both make interest rate decisions this week.
On Wednesday, payrolls processor ADP issues its U.S. jobs data and the Institute for Supply Management publishes data about non-manufacturing sectors of the U.S. economy.
The European Central Bank will decide on Thursday whether to hold rates or cut them to offer further support for stumbling euro zone countries.
The Bank of Japan is expected to keep monetary settings unchanged on Friday even as weakening Asian manufacturing activity clouds the outlook. The bank is seen preferring to spend some time reviewing the effect of its policy loosening last month.
Editing by Jeffrey Hodgson