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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza