A Canadian dollar, or loonie, sits on top of its American counterpart in Toronto on Sept. 20, 2007. THE CANADIAN PRESS/Adrian Wyld
February 14, 2014 - 5:48 AM
TORONTO - The Canadian dollar was higher Friday despite data showing manufacturing shipments declined during December for the first time in since last August.
The loonie was off the highs of the morning but still up 0.08 of a cent to 91.18 cents US as Statistics Canada reported that manufacturing shipments fell by 0.9 per cent. Economists had been looking for a gain.
The agency cited a decline in transportation equipment sales for the step back. But it also noted that manufacturing sales have risen in six of the past eight months and were 2.7 per cent higher than in December 2012.
The U.S. dollar had earlier moved lower against most currencies in the wake of positive economic reports from Europe and Asia.
China’s consumer prices rose 2.5 per cent over a year earlier in January, unchanged from December’s rate. The rise in politically sensitive food costs decelerated to 3.7 per cent from December’s 4.1 per cent.
Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world’s second-biggest economy.
Other data showed that economic growth across the eurozone was stronger than expected at the end of 2013 as gross domestic product grew by 0.3 per cent in the fourth quarter from the previous quarter. That adds up to an annualized rate of about 1.2 per cent. Analysts had been looking for fourth quarter growth of 0.2 per cent.
In the third quarter, growth was only 0.1 per cent across the eurozone, which came out of recession at the beginning of 2013.
Commodity prices were mixed following the release of the overseas economic data as March crude on the New York Mercantile Exchange declined 17 cents to US$100.18 a barrel.
March copper was up a cent at US$3.26 a pound while April bullion gained $15.70 to US$1,315.80 an ounce.
Traders also awaited the latest readings on American industrial production and consumer confidence coming out later in the morning.
News from © The Canadian Press, 2014