CANADA FX-C$ firms, helped by Chinese data;bond market closed

Mon Nov 12, 2012 9:58am EST

* C$ at C$0.9993 vs US$, or $1.0007
    * Chinese industry, exports and retail sales beats forecasts
    * C$ underperforms Aussie, New Zealand dollars
    * C$0.9985 key support level

    By Solarina Ho
    TORONTO, Nov 12 (Reuters) - The commodities-linked Canadian
dollar firmed against the U.S. dollar on Monday after touching a
three-month low in the previous session, tracking natural
resource prices, which rose on the back of ecouraging data out
of China.
    Chinese industrial output, exports and retail sales all beat
expectations in October, while inflation eased more than
expected. The news gave copper prices a boost, while recent data
showing China's implied oil demand surged last month offered
support for crude oil prices.  
    The results offered a reassurance that the economy for one
of the world's largest consumers of copper and oil -- among
other commodities -- was turning the corner.  
    "On the face of it, the Chinese numbers overnight were
probably a little bit better, suggesting some strength in the
export markets," said Shaun Osborne, chief currency strategist
at TD Securities, but cautioned that more data from China, as
well as the United States and Europe were needed to suggest
traction in the global economic recovery.
    Bond markets closed in the United States and and Canada for
Veterans Day and Remembrance Day respectively, and both
countries' governments were also closed, meaning that there
would be no release of official statistical data to drive
markets.
    "Very little impetus today. In general, we have no data,
it's probably going to be a session of range trading, looking
ahead to the events and developments later in the week," said
Osborne.    
   "It's going to be a case of still looking at risk appetite
generally ... There's probably a bias toward a more risk-off
trading environment, which is going to be good for the U.S.
dollar, negative for the Canadian dollar."
   At 9:34 a.m. (1434 GMT), the Canadian dollar was
trading at C$0.9993 versus the U.S. dollar, or $1.0007, up from 
 the previous North American session finish of C$1.0013, or
99.87 U.S. cents.
    Canada's dollar was outperforming most other major
currencies, but was underperforming its fellow
commodities-linked currencies, the Australian and New Zealand
dollars.
    Osborne said C$0.9985 would be a pivotal point for the
currency, and expected to see it test support around the
mid-C$.99 range before trading back towards parity. He expected
the U.S. dollar to trade higher into the end of this year.
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