Loonie tumbles on U.S. jobs data

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TORONTO— The Canadian Press
Published Friday, Sep. 02, 2011 8:59AM EDT
Last updated Friday, Sep. 02, 2011 9:23AM EDT

The Canadian dollar (CAD/USD-I1.02-0.006-0.61%) fell almost half a U.S. cent after U.S. job growth came in flat during August.

The lost 0.47 of a cent to 102.04 cents (U.S.).

On top of that, the U.S. Labour Department revised July job creation down to 85,000 from 117,000.

It's the first time since February 1945 that the U.S. government has reported a net job change of zero. The unemployment rate stayed at 9.1 per cent.

Expectations for U.S. job growth were modest, with economists expecting gains of between 70,000 and 80,000.

Oil prices also fell sharply on demand worries with the October crude contract on the New York Mercantile Exchange down $2.13 to US$86.80 a barrel.

Copper prices were lower with the December contract off five cents to US$4.11 a pound.

But gold prices rebounded as the December contract on the Nymex gained $45.20 to US$1,862 an ounce.