By Commodity News Service Canada
WINNIPEG, April 23 – The Canadian dollar closed fractionally softer relative to the US dollar on Wednesday, undermined by disappointing Chinese economic data, analysts said.
The Canadian dollar closed at US$0.9064 or US$1=C$1.1032 on Wednesday, which compares with Tuesday’s North American settlement of US$0.9068 or US$1=C$1.1028.
Broad strength in the value of the US dollar was also bearish for the loonie, as was spillover pressure from the weakness seen in crude oil values.
However, positive Canadian retail sales data limited the downside. Statistics Canada said retail sales jumped 0.5 per cent in February, beating expectations of a 0.4 per cent jump.
Canadian bonds were higher on Wednesday, following the advances seen in the US Treasury market, industry officials said.
The two-year bond yielded 1.065% late Wednesday, from 1.068% late Tuesday. The 10-year bond yielded 2.425%, from 2.445%. Bond yields fall as their prices rise.
