The pair fell to session lows, 1.0134, on Tuesday following the release of mixed Canadian housing data. The Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts ticked up to 184,000 units in March from 183,200 units in February. Analysts had expected housing starts to dip to 177,000 units. Meanwhile, official data showed that the number of new building permits issued in Canada rose less-than-expected in February. Statistic Canada said the number of new building permits issued rose by a seasonally adjusted 1.7% in February, compared to expectations for a 4% increase. January’s figure was revised to a 1.8% gain from a previously reported increase of 1.7%. The CAD found support earlier in the day after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%. The data eased concerns over further policy tightening by the Chinese government. The loonie eased back from its highest level since October 2008 against the yen, with CAD/JPY sliding 0.22% to 97.50.
EasyForexNews Research Team