Loonie Falls As Canadian Economy Stalls Unexpectedly

09:16, 30th September 2014

(RTTNews) - The Canadian dollar fell against its major rivals on Tuesday, following a data showing that Canada's economic growth stalled in July.

Data from Statistics Canada showed that Canada's GDP was flat in July, following six consecutive monthly gains.

Economists were expecting an increase of 0.3 percent for the month, unchanged from last month.

On year, GDP grew 2.5 percent in July, missing expectations for growth of 2.8 percent and following the 3.1 percent increase in the preceding month.

The loonie fell to more than a 6-month low of 1.1203 against the greenback, compared to 1.1162 hit late New York Monday. On the downside, the loonie may find support around the 1.125 area.

Reversing from an early 5-day high of 98.37 against the yen, the loonie eased back to 97.99. The next possible support for the loonie is seen around the 97.00 region.

The loonie pared some of its early gains against the euro, trading at 1.4093, off early 11-day high of 1.4047. The pair was valued at 1.4161 when it ended yesterday's deals.

After climbing to 0.9707 against the aussie at 8:45 pm ET, the loonie changed its path and was trading at 0.9752. At Monday's close, the pair was valued at 0.9728.