The Canadian dollar CADUSD edged lower against its U.S. counterpart on Tuesday but stopped short of a recent two-and-a-half-month low, as investors awaited domestic retail sales data and the Jackson Hole Symposium this week.
The loonie was trading 0.1 per cent lower at 1.3553 to the greenback, or 73.78 U.S. cents, after trading in a range of 1.3514 to 1.3564. On Friday, the currency touched its weakest intraday level since June 1 at 1.3574.
“We are seeing a strong dollar bid over the last week or so. A lot of that is coming off the sour China news … (Rising) U.S. yields also fed into the story,” said Jay Zhao-Murray, market analyst at Monex Canada Inc.
“Jackson Hole is going to be the big event for the week … U.S. monetary policy has such a great effect on USD-CAD.”
The U.S. dollar strengthened against a basket of major currencies as traders awaited the Fed’s central bank symposium at Jackson Hole, Wyoming, set for Aug. 24-26.
Canadian retail sales data for June, due on Wednesday, could offer clues on the strength of the domestic economy after it was buffeted by labour strikes and wildfires in recent months. Analysts expect the level of sales to be unchanged compared to May.
The price of oil, one of Canada’s major exports, settled 0.5 per cent lower at $80.35 a barrel as investors remained focused on the likelihood of China’s economic malaise hobbling demand from the world’s top crude importer.
Canadian government bond yields rose across the curve. The 10-year was up 3.1 basis points at 3.810 per cent, trading at nearly its highest since November 2008.