TORONTO, Sept 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, but the move was limited ahead of employment data later in the week and after another possible indication that tensions between Canada and the United States might be lessening.
The loonie was trading 0.1% lower at 1.3790 per U.S. dollar, or 72.52 U.S. cents after moving in a range of 1.3779 to 1.3807. On Tuesday, the currency touched a six-day low at 1.3815.
"Tuesday’s bond market turmoil has seen USD-CAD stabilize in a higher range, but all eyes are on Friday’s data to see if this persists," said Nick Rees, senior FX market analyst at Monex Europe Ltd
"We see this next round of labour market data as pivotal for both the Fed and the BoC this month, with knock on consequences for USD-CAD."
Canada's employment report for August, due on Friday, is expected to show the economy adding 10,000 jobs and the unemployment rate edging up to 7% from 6.9% in July.
Investors see a roughly 60% chance the BoC cuts interest rates at a policy decision on September 17 after data on Friday showed a deeper-than-expected contraction in Canada's economy for the second quarter. The central bank has left its benchmark rate on hold at 2.75% since March.
Canadian Prime Minister Mark Carney said that he had a lengthy and productive conversation with U.S. President Donald Trump on Monday, covering trade issues and other topics. The two sides have been locked in a trade war since early this year.
The price of oil , one of Canada's major exports, was trading 2.5% lower at $63.97 a barrel ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production targets in October.
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