Canadian Dollar Declines After Weak Retail Sales Data

The Canadian dollar moved down against its major opponents in the European session on Tuesday, as a data showed that the nation’s retail sales contracted unexpectedly in August.

Data from Statistics Canada showed that retail sales fell 0.1 percent in August, after rising 0.6 percent in the previous month. Economists had forecast a 0.5 percent increase.

Core retail dropped 0.2 percent on month, following a flat reading in July. The rate was forecast to rise 0.1 percent.

Investors digested election results in Canada. The Liberals, led by Prime Minister Justin Trudeau have won a closely fought battle for supremacy, but then it will be a minority government that will need the support of a smaller left-leaning party in Parliament.

The currency traded mixed against its major counterparts in the Asian session. While it rose against the greenback and the yen, it was steady against the euro and the aussie.

The loonie depreciated to 1.3123 against the greenback, from a 3-month high of 1.3071 it touched at 9:15 pm ET. Continuation of the loonie’s downtrend is likely to see it challenging support around the 1.33 level.

Following a 6-day advance to 1.4569 against the euro at 5:45 am ET, the loonie changed direction and fell to 1.4601. Should the currency drops further, it may challenge support around the 1.47 level.

Having climbed to more than a 3-month high of 83.17 against the yen at 9:15 pm ET, the loonie pulled back to 82.80. Next likely support for the currency is seen around the 79.5 level.

The loonie retreated to 0.8995 against the aussie, from a 2-day high of 0.8973 it recorded at 5:30 am ET. The currency is poised to find support around the 0.92 level.

Looking ahead, U.S. existing home sales for September are due at 10:00 am ET.

The material has been provided by InstaForex Company – www.instaforex.com