Loonie Declines As Canadian Economy Shrinks Unexpectedly

10:37, 31st October 2014

(RTTNews) - The Canadian dollar fell against its major counterparts on Friday, as data showed that Canadian economy contracted unexpectedly in August.

Data from Statistics Canada showed that Canada's GDP fell 0.1 percent on month in August, following no growth in July. Economists predicted the GDP to match July's reading.

The GDP growth slowed 2.2 percent on year from July's 2.5 percent rise. It was also down from the expected 2.3 percent increase.

The loonie declined to 1.1269 against the greenback, its strongest since October 22. The next possible support for the loonie is seen around the 1.13 zone.

Retreating from an early high of 1.4058 against the euro, the loonie edged down to 1.4131. If the loonie extends slide, it may eye support around the 1.42 mark.

The loonie slipped to a 3-day low of 0.9932 against the aussie, coming off from an early high of 0.9846. Continuation of the loonie's downtrend may see it finding support around the 1.00 region.

The loonie, which climbed to more than a 5-month high of 99.86 against the yen at 7:15 am ET, eased back slightly with pair trading at 99.30. The pair closed yesterday's trading at 97.59.