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(Refiles to remove the word CORRECTED from the headine. The report is not corrected)
* C$ at C$0.9774 vs US$, or $1.0231
* Bond prices flat to lower across curve
* Canada economy shrinks in Q2, first time since recession
* Canada's June GDP shows rebound from May
* U.S. private sector jobs data weaker than expected (Updates to midday)
By Claire Sibonney
TORONTO, Aug 31 (Reuters) - The Canadian dollar was little changed against the greenback in choppy trade on Wednesday, pushed up by stronger equities despite weak North American economic data and the likelihood of U.S.-dollar positive flows at month-end.
In Canada, data showed the economy shrank in the second quarter -- the first quarterly fall since the 2008-09 recession -- largely due to temporary factors such as the earthquake and tsunami in Japan in March. However, growth in June rebounded after falling in May. [ID:nN1E77U099].
"The rise in the Canadian dollar was counterintuitive with the GDP data," said Jack Spitz, managing director of foreign exchange at National Bank Financial, noting U.S. private sector employment data for August was also soft heading into the closely watched U.S. nonfarm payrolls release on Friday. [nN1E77U04P]
Sal Guatieri, senior economist at BMO Capital Markets, noted that Canada's better-than-expected June GDP data helped cushion the blow from the disappointing quarterly figure, raising hopes that the economy is bouncing back in the third quarter.
The domestic data did little to change the view that the Bank of Canada will not increase rates until next year.
Eeconomists and strategists in a Reuters poll of released on Wednesday forecast that the central bank will wait until at least the second quarter of next year to hike rates as global monetary policy stays accommodative due to slow economic growth. [CA/POLL]
At 11:46 a.m. (1546 GMT), the Canadian dollar CAD=D4 was at C$0.9774 to the U.S. dollar, or $1.0231, up slightly from Tuesday's North American session close of C$0.9782 to the U.S. dollar, or $1.0223.
Positive North American equities helped the currency push higher, with U.S. stocks up more than 1 percent after the soft jobs data boosted hopes the U.S. Federal Reserve would act again to stimulate the economy. [.N] [.TO]
National's Spitz added that financial flows on Wednesday should be U.S.-dollar positive because equity prices dropped in August.
"There has been a recovery of sorts in the underlying equity markets, but still, on a month-to-month basis, portfolio hedgers will certainly in theory at the very least be needing to buy back U.S. dollars to compensate for the drop in underlying valuations," Spitz said.
He noted significant U.S. dollar support at the 50- and 100-day moving average around C$0.9700 and no major U.S.-dollar resistance until above C$0.99 to parity, due to recent volatility.
Canadian bond prices were flat to lower across the curve, following U.S. Treasuries. [US/]
The two-year bond CA2YT=RR was flat to yield 1.028 percent, while the 10-year bond CA10YT=RR slipped 19 Canadian cents to yield 2.424 percent. (Editing by Peter Galloway)