By Commodity News Service Canada
WINNIPEG, August 9 – The Canadian dollar moved higher against its US counterpart on Friday, as risk sentiment improved amid signs that China’s economy is improving, analysts said.
The National Bureau of Statistics in China reported industrial production rose 9.7 per cent in the year to June, which beat expectations of a nine per cent jump. Chinese retail sales data was also positive, as they increased 13.2 per cent in July 2013, from July 2012.
The Canadian currency was quoted at US$0.9714, or US$1=C$1.0294 at the close on Friday, which compares with Thursday’s North American close of US$0.9686, or US$=C$1.0324.
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Strong gains seen in commodities, including crude oil and gold, also spilled over to help underpin the Canadian currency.
However, disappointing Canadian employment data was bearish. Statistics Canada reported that the country lost 39,000 jobs in July, falling below expectations of a 10,000 job increase. The unemployment rate in Canada rose 0.1 percentage points to 7.2 per cent.
Canadian bonds moved higher amid lackluster Canadian employment data and positioning ahead of the weekend, traders said.
The two-year bond yielded 1.134% late Friday, from 1.143% late Thursday. The 10-year bond yielded 2.480%, from 2.498%. Bond yields fall as their prices rise.
