The Canadian dollar was down two-tenths of a cent to 91.32 cents US in morning trading.
"Since its July 3rd high, [the Canadian dollar] has lost three per cent, highlighting the vulnerability around the currency," said Scotiabank’s chief foreign exchange strategist Camilla Sutton in a morning commentary.
"The core risk for [the Canadian dollar] this week is Friday’s employment release," she said.
Analysts expect job gains of 25,000 in the month of June, with the unemployment rate ticking down to 7.0 per cent.
But job growth failed to match expectations in the previous month, leading to uncertainty.
West Texas Intermediate Oil, which was selling for $105 US a barrel as recently as June, is now hovering around the $98 mark.
HSBC's index of China's service industries activity fell to 50.0 in July from 53.1 in the previous month. The weak figure shows the impact of a slowdown in China's property market, said HSBC chief China economist Qu Hongbin.
Long-term forecasts generally see the loonie dropping further into the 85- to 88-cent range by next year.