News Column

Loonie up amid mixed Chinese data, better than expected Canadian housing starts

June 9, 2014

Linda Nguyen, The Canadian Press



TORONTO - The Canadian dollar was slightly higher Monday amid mixed economic data from China.

The loonie edged up 0.10 of a cent to 91.59 cents US as the world's second-largest economy says its export growth accelerated in May, despite a decline in imports.

Data released by China'sGeneral Administration of Customs on Sunday showed exports rose 7 per cent in dollar terms, up from a 0.9 per cent increase in April and rather large slump in February and March.

Imports declined 1.6 per cent in May after inching up 0.8 per cent in April.

Meanwhile, in Canada, the Canada Mortgage and Housing Corp. says housing starts increased to a seasonally adjusted annual pace of 198,324 homes in May, up from 196,687 in April.

The results were better than expected as economists had expected the pace to come in at 185,000, according to Thomson Reuters.

There is little economic news this week that is expected to guide the Canadian dollar.

"With the Bank of Canada policy update and jobs data release completed last week and no real catalyst provided, the Canadian dollar should be range-bound for the most part and move directionally with risk appetite. Growth and inflation are key themes to follow," wrote Rahim Madhavji of Knightsbridge Foreign Exchange in a commentary.

Also in Asia, the Japanese government reported that its economy grew an annualized 6.7 per cent in January-March thanks to strong private investment, up from an earlier estimate of 5.9 per cent growth. The revised data shows the world's No. 3 economy in better shape to withstand the drop in consumer demand that followed a three percentage point hike in sales tax on April 1.

Commodity markets were mixed as the July crude in New York climbed 87 cents higher to US$103.53 a barrel.

August bullion gained $2.10 to US$1,254.60 an ounce, while July copper fell two cents to US$3.03 a pound.


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Source: Canadian Press DataFile


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