On Wednesday, the US dollar fell against its Canadian counterpart, but the rise for the last one will be limited, as concerns over the prospective of global economic growth continue to weigh on market sentiment.
In early US trade, the USD/CAD pair reached 1.3217, the session low, after which the pair subsequently consolidated at 1.3224, down 0.26%.
The pair is likely to get support at 1.1159, the low of August 31 and resistance at 1.1366, the high of August 27.
Earlier, ADP reported that private sector employment in the US rose 190 000 last month, which was below the expected gain of 201 000. In July, in US there were created 177 000 jobs, the figure being revised down from a previously reported growth of 185 000.
The disappointing data suggest that the Federal Reserve may delay raising interest rates at the upcoming meeting later this month.
Currently, investors are waiting for Friday's publication of government data on the number of people employed in the US non-farm payrolls for August, which may clarify the likelihood of rising interest rates in the near future.
In general, the market sentiment remains subdued after the publication on Tuesday of poor manufacturing data, which raised concerns about the prospects of the global economy.
Economic reports showed that China's manufacturing sector contracted at the fastest pace in three years, while manufacturing activity in Europe and the US also proved weaker than expected.
The Canadian dollar rose against the euro; EUR/CAD went down 0.71% to 1.4849.
Prospects for the Canadian dollar remain weak after on Tuesday, official data showed that the annualized rate of GDP declined in the second quarter by 0.5%.
Although the numbers were better than the predicted decline by economists, by 1.0%, the revision of index changes in GDP in the first quarter showed a greater than originally anticipated decrease - by 0.8%.
The decline in GDP for two consecutive quarters indicates a technical recession, and this year the Bank of Canada cut interest rates twice in an effort to strengthen growth.
In June, the economy grew 0.5% compared to the previous month, surpassing expectations for an increase of 0.2%, after falling 0.2% the previous month.