Canadian Dollar Slides Amid Risk Aversion
September 16 2019 - 2:22AM
RTTF2
The Canadian dollar drifted lower against its major counterparts
in the early European session on Monday amid risk aversion, as weak
China data stocked worries over global growth, while the attacks on
Saudi's crude facilities raised geopolitical worries.
Industrial output growth unexpectedly weakened to 4.4 percent in
August from the same period a year earlier, the slowest pace since
February 2002 and down from 4.8 percent in July.
Retail sales and investment figures also disappointed amid
rising trade pressure and softening domestic demand.
Drone attacks at Saudi Arabia's oil production facilities in
Abqaiq and Khurais heightened geopolitical tensions in the Middle
East.
The currency has been trading lower against its major
counterparts in the Asian session, excepting the euro.
The loonie dropped to 1.3261 against the greenback and 1.4692
against the euro, from its early highs of 1.3209 and 1.4635,
respectively. The next possible support for the loonie is seen
around 1.35 against the greenback and 1.49 against the euro.
The loonie edged down to 0.9120 against the aussie, off an early
high of 0.9071. If the loonie slides further, 0.945 is likely seen
as its next support level.
The loonie fell back to 81.32 against the yen, heading to pierce
an early 1-week low of 81.24. The loonie is seen finding support
around the 78.5 mark.
Looking ahead, Canada existing home sales for August and New
York Fed's empire manufacturing activity for September are due in
the New York session.
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