CANADA FX DEBT-C$ rises as housing starts top expectations
TORONTO, April 8 (Reuters) - The Canadian dollar rose against the greenback on Wednesday as U.S. stock index futures steadied and data showed Canadian housing starts rose more than expected in March.
Canadian housing starts rose 13.7 percent in March to a seasonally adjusted rate of 154,700 units from an upwardly revised 136,100 units in February, Canada Mortgage and Housing Corp said on Wednesday.
The number of starts in March beat the consensus expectations of analysts who foresaw 130,000 starts. [ID:nHND005505]
"We did see the housing starts data come out stronger than expected. That's had a positive influence on price action," said George Davis, chief technical strategist at RBC Capital Markets.
As well, he added U.S. stock index futures have pared losses or turned positive.
"That implies lower levels of risk aversion. That tends to be another positive factor for the Canadian dollar," said Davis.
At 8:34 a.m. (1234 GMT), the currency was at C$1.2312 to the U.S. dollar, or 81.22 U.S. cents, up from C$1.2378 to the U.S. dollar, or 80.78 U.S. cents at Tuesday's close.
Canadian government bond prices were mostly higher across the curve, tracking U.S. Treasuries as concern about corporate earnings in the recession fueled demand for safer government bonds. [ID:nL8408504] (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)
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