CAD Drops After Positive US Data is Released

The Canadian dollar was lower Friday as investors looked to China to see if it will make any moves to address its economic slowdown.

The loonie fell 0.09 of a cent to 90.56 cents US.

Markets have been antsy, awaiting an indication of whether the world’s second-largest economy will pump more stimulus into its economy, as growth in China has slowed to its weakest point since the financial crisis.

China has set a target of 7.5 per cent economic growth this year but is more concerned with creating new jobs than precisely meeting the GDP figure.

A preliminary reading of China’s manufacturing, released Monday, showed activity at an eight-month low in March.

Meanwhile, there was more evidence to show that the U.S. economy is gaining strength at a moderate pace.

Americans spent slightly more in February but the increase, although modest, may have held back by severe winter weather.

The Commerce Department says consumer spending rose 0.3 per cent in February following a 0.2 per cent rise in January. The spending increases would have been weaker except for a surge in spending on utility bills.

In February, spending on durable goods such as autos dropped as consumers stayed away from auto dealerships.

Income increased 0.3 per cent in February, the same amount as January.

via Globe & Mail

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.