US dollar traded with a slight change against its Canadian rival on Tuesday, following the release of mixed data out of the United States, which might add to the case that the Federal Reserve Bank will abstain from trimming the monthly pace of its monetary stimulus at the policy meeting, starting today.
Having slipped to a session low at 1.0428 at 10:05 GMT, USD/CAD distanced from that level to trade at 1.0437, still down 0.08% for the day. Support was likely to be found at October 25th low, 1.0409, while resistance was to be met at October 25th high, 1.0459.
Earlier on Tuesday it was reported that retail sales in the United States dipped 0.1% in September compared to a month ago, following the 0.2% gain in August compared to July, while median estimates pointed that sales will remain unchanged in September. Retail sales, excluding automobile sales, rose 0.4% in September in line with expectations, following the 0.1% climb in August.
A separate report revealed that the index of producer prices (PPI) decreased 0.1% in September compared to August, after in August compared to July it advanced 0.3%. Experts had anticipated a 0.2% gain in prices during September. Core producer price index, which excludes prices of food and energy, climbed 0.1% in September on a monthly basis in consonance with projections, after it remained flat in August.
In addition, the index, gauging prices of homes in 20 large cities in the country, rose 12.82% in August 2013 compared to August 2012, which outstripped preliminary estimates of a 12.40% rise. July’s result has been revised down to a 12.31% increase from 12.39% increase previously.
Following the above mentioned data points, the index of consumer confidence in the United States was reported to have decreased significantly in October, reaching its lowest level in the past six months. According to the Conference Board research group, consumer expectations regarding nations economic development have been dampened the most as a result of the partial government shutdown and the experienced fiscal deadlock. The index of confidence fell to a reading of 71.2 in the month of October, following the revised up 80.2 in September (79.7 previously). Experts had expected that the index will demonstrate a lesser slide, to a value of 75.0 in October.
Meanwhile, Canadian industrial production price index (IPPI) fell 0.3% in September on a monthly basis, after it rose 0.3% in August, while preliminary estimates of a 0.1% uptick have been confounded. The annual performance of the index pointed a 1.5% decline in September, considerably greater than expected.
The loonie, as Canadian dollar is also nicknamed, was steady against the euro, with EUR/CAD cross gaining 0.05% on a daily basis to trade at 1.4409 at 14:30 GMT. ECB member Ewald Nowotny said earlier today, that in his view, at present the central bank did not have an instrument at its disposal, with which to curb the strong euro. As a result, the common currency advanced to a fresh session high against the US dollar.
GBP/CAD pair was losing 0.36% to trade at 1.6800 at 14:37 GMT.
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