Loonie rises as China’s GDP beats expectations

Loonie rises as China’s GDP beats expectations
Malcolm Morrison
TORONTO — The Canadian Press
Published Tuesday, Oct. 21 2014, 8:46 AM EDT
Last updated Tuesday, Oct. 21 2014, 8:48 AM EDT
The Canadian dollar was higher Tuesday while commodity prices headed higher in the wake of Chinese growth data that came within expectations.
The dollar gained 0.28 of a cent to 88.9 cents (U.S.) as China’s economic growth slowed to a five-year low of 7.3 per cent last quarter. That is lower than the 7.5-per-cent rate that had been targeted by Chinese leaders, who are trying to steer China toward growth based on domestic consumption instead of over-reliance on trade and investment.
But the number was broadly in line with expectations and higher than some estimates that had pegged growth at 7.2 per cent.
Other data showed growth in industrial production was largely stable, with a rate of 8.5 per cent year-over-year in the first three quarters, down 0.3 point from the first half. Growth in consumer spending cooled to 11.6 per cent in September, the fourth monthly decline in a row.
On the commodity markets, November crude gained 20 cents to $82.91 a barrel, December gold rose $3.90 to $1,248.60 an ounce while December copper was ahead two cents to $3.01 a pound.
It is a key week for the Canadian currency as the Bank of Canada delivers its next interest rate statement on Wednesday along with its latest monetary policy report containing its latest estimates for growth and inflation.
Canada’s central bank is expected to leave its key rate unchanged at 1 per cent, where it has been for over four years. Traders will focus on the morning news conference by Bank of Canada Governor Stephen Poloz.
Also on Wednesday, Statistics Canada delivers the August read on retail sales.

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on October 21, 2014, in economic impact. Bookmark the permalink. Leave a comment.

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