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Forex - USD/CAD hits 9-day low after U.S., Canadian economic data

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Forex Pros - The U.S. dollar extended losses against its Canadian counterpart on Tuesday, after reports showing that U.S. producer prices posted a large annualized gain last month, while Canada's industrial capacity increased in the first quarter.

USD/CAD hit 0.9698 during early U.S. trade, the pair's lowest since June 1; the pair subsequently consolidated at 0.9711, shedding 0.47%.

The pair was likely to find support at 0.9666, the low of June 1 and resistance at 0.9797, Monday's high.

Earlier in the day, the U.S. Bureau of Labor Statistics said producer prices rose 0.2% in May, taking the annual inflation rate to 7.3%, more than the 6.8% forecasted increase.

Core inflation, which excludes food and energy costs, rose broadly in line with expectations in May, increasing by 0.2% after rising by 0.3% in the preceding month.

A separate report showed that U.S. retail sales posted the first drop in 11 months in May, dragged down by falling automobile sales.

The Commerce Department said retail sales slipped 0.2%, after a downwardly revised 0.3% increase in April. Analysts had expected retail sales to decline by 0.7% last month.

Meanwhile, Statistics Canada said Canadian industries operated at 79% of their production capacity in the first quarter, up 2.2% from the previous quarter.

It was the seventh consecutive quarterly gain and surpassed expectations for an increase to 77%.

The Canadian dollar was also higher against the euro, with EUR/CAD shedding 0.43% to hit 1.4006.

Also Tuesday, Chinese government data showed that consumer price inflation rose at an annualized rate of 5.5% in May, broadly in line with expectations. Retail sales came in slightly higher than forecast and industrial output was slightly lower, easing investor concerns over a slowdown in the world's second largest economy.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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