Loonie higher as market, inflation data beats expectations
Canadian dollars (loonies) are pictured in Vancouver, B.C. Thursday, Sept. 22, 2011. (Jonathan Hayward / THE CANADIAN PRESS)
Published Monday, October 15, 2012 9:32AM EDT
TORONTO -- The Canadian dollar was higher Monday as better than expected economic data from China improved risk appetite while traders looked ahead to a speech and news conference later in the day by Bank of Canada governor Mark Carney.
The loonie was up 0.16 of a cent to 102.27 cents US.
The Bank of Canada also releases its Business Outlook Survey later in the morning.
Economists say the survey will likely reflect growing pessimism about the strength of the global recovery.
"The theme of caution is expected to extend toward hiring and investment intentions, which are both expected to retreat from the elevated levels reported in the summer survey," said a commentary from TD Economics.
Data released Sunday showed that China's consumer price index for September rose 1.9 per cent from a year earlier, down from a two per cent advance during August.
Another report released late Friday after North American markets closed showed that China's international trade surplus widened to $27.7 billion. Exports unexpectedly jumped 9.9 per cent year over year, which was the best pace in three months.
China's third quarter economic growth data will be released Friday. GDP growth is expected to ease to 7.4 per cent year over year, which would be the slowest pace since the first quarter of 2009. China has taken a series of steps over the last couple of years to slow its red-hot economy in order to get a grip on unacceptably high inflation levels.
Oil prices were flat with the November contract on the New York Mercantile Exchange down a penny to US$91.85 a barrel.
Copper prices failed to find lift from the Chinese data with the December contact unchanged at US$3.70 a pound.
The December bullion contract declined $13.30 to US$1,746.40 an ounce.