Canadian Dollar Drops On Growth Worries
(RTTNews) - The Canadian dollar fell against its most major counterparts in the European session on Wednesday, as weak U.S. factory orders and job openings data raised concerns over a recession.
Data on job openings and factory orders released on Tuesday indicated that the Fed's tightening cycle is weighing on economic growth.
The data prompted traders to scale back expectations for a quarter-point rate hike to 42 percent at the Fed's May meeting.
Traders also look ahead to the release of the Labour Department's closely watched monthly jobs report on Friday.
Economists expect the report to show employment increased by 240,000 jobs in March after an increase of 311,000 jobs in February. The unemployment rate is expected to hold at 3.6 percent.
The loonie weakened to a 2-day low of 1.3472 against the greenback and a 1-week low of 97.38 against the yen, off its early highs of 1.3425 and 98.09, respectively. The currency may find support around 1.36 against the greenback and 94.00 against the yen.
The loonie declined to a 5-day low of 1.4759 against the euro, from an early high of 1.4713. The next likely support for the loonie is seen around the 1.49 level.
In contrast, the loonie firmed against the aussie, touching a 2-day high of 0.9022. The currency is seen finding resistance around the 0.89 level.
Looking ahead, U.S. ADP private payrolls data for March is scheduled for release at 8:15 am ET.
U.S. and Canadian trade data for February and ISM non-manufacturing PMI for March will be released in the New York session.
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