CAD Unchanged After Chinese Data Confirms Slowdown

The Canadian dollar was little changed against the greenback on Tuesday, held back by
disappointing Chinese data, as a lack of domestic economic news left the currency searching for direction.

Data overseas showed China’s economic activity was weak across the board last month, with figures from output to investment and consumption missing market expectations.

The Canadian dollar is often sensitive to data out of China, the world’s second-largest economy and a major consumer of natural resources.

“That again signals that growth is slowing in the region,” said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. “What policymakers have said is essentially coming true,
where growth is transitioning to more of a sustainable trajectory and we’re not going to see that credit-fueled reflation in the economy.”

At home, the economic calendar is light this week, with no major reports expected until March manufacturing sales on Thursday.

The Canadian dollar was at C$1.0895 to the greenback, or 91.79 U.S. cents, a tad stronger than Monday’s
close of C$1.0897, or 91.77 U.S. cents.

via Reuters

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