The Canadian economy unexpectedly added more jobs in November, despite slower growth than the previous month.
This has supported the Canadian dollar to continue to strengthen against the US dollar to a two-year high trading around 1.2775 during the opening of today's Asian market session.
Canadian employment growth slowed in November, but unlike the United States, it was a big surprise for the market.
Monthly data published by Statistics Canada showed employment had increased 62,100 last month from 83,000, beating market projections for an increase of just 22,000. Meanwhile, the unemployment rate dropped to 8.5% from 8.9%.
The significant differences exhibited in the Canadian and US employment sectors have prompted the loonie dollar to remain strong against the greenback dollar.
Investors are now focused on the Bank of Canada (BOC) policy meeting scheduled to take place on Wednesday.
Following stronger-than-expected employment data, the market expects that the BOC will maintain its key interest rate at 0.25% and is unlikely to improve its bond-buying program.
