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Forex - USD/CAD extends losses after upbeat Canadian data

Published 01/31/2011, 09:07 AM
USD/CAD
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EUR/CAD
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Investing.com – The U.S. dollar extended early losses against its Canadian counterpart on Monday, falling to a fresh daily low after Canada’s monthly domestic growth and producer price data came in higher than expected.

USD/CAD hit 0.9962 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.9974, shedding 0.36%.

The pair was likely to find support at 0.9911, the low of January 25 and resistance at 1.0027, the days high and a seven-day high.

Statistics Canada said gross domestic product rose by a seasonally adjusted 0.4% in November, after rising by 0.2% the previous month and beating expectations for a 0.3% increase.

A separate report showed that higher prices for petroleum and metals lifted Canadian producer prices and raw materials prices slightly more than expected in December.

The industrial product price index rose 0.7% in the month, topping market forecasts of a 0.6% gain and accumulating a 2.9% increase on the year. It was the fifth consecutive month of increases for producer prices, led by a 4% gain in petroleum and coal products.

Raw materials prices grew 4.2% in December, the largest gain since June and above estimates for a 4.0% gain on increases in mineral fuels, nonferrous metals and vegetable products.

Meanwhile, the loonie was down against the euro, with EUR/CAD rising 0.36% to hit 1.3675.

Also Monday, official data showed that the U.S. core personal consumption expenditure index was unexpectedly flat in December. The report said that while personal spending rose more-than-expected in December, personal incomes rose less-than-expected.

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