The Canadian dollar climbed against its most major counterparts in early New York trading on Monday, as oil prices recouped its early losses on a back of a weak dollar, which was weighed by weak economic data and escalating worries over North Korea.
WTI crude for May delivery rose above $53 per barrel in New York.
The dollar weakened in tandem with U.S. treasury yields, after U.S. retail sales data disappointed investors and the U.S. said it is working with China and other allies on a range of responses to North Korea's failed missile launch over the weekend.
Further underpinning oil prices were upbeat Chinese data. Official data showed that the Chinese economic growth surged to a better-than-expected 6.9 percent, amid gains in housing, infrastructure investment, exports and retail sales. That's within the government's target range of 6.5 percent to 7 percent growth in 2017.
That said, signs of unrelenting U.S. shale production and geo-political friction over North Korea kept oil gains in check.
Pence declared during a visit to South Korea that "the era of strategic patience is over" and said "all options are on the table" to address North Korean President Kim Jong Un's missile and nuclear testing programs.
The remarks by Pence came a day after a failed missile test by North Korea and two days after the communist nation held a military parade showcasing its military hardware.
The currency has been trading in a positive territory in the previous session, with the exception of the euro.
The loonie climbed to a 4-day high of 1.3276 against the greenback, compared to last week's closing value of 1.3325. The loonie is seen finding resistance around the 1.31 mark.
Data from the Federal Reserve Bank of New York showed continued growth in the New York manufacturing sector in the month of April, although the pace of growth slowed much more than anticipated.
The New York Fed said its general business conditions index tumbled to 5.2 in April after dipping to 16.4 in March, although a positive reading still indicates growth. Economists had expected the index to edge down to 15.0.
Reversing from an early multi-month low of 81.26 against the yen, the loonie rebounded to 81.79. The next possible resistance for the loonie is seen around the 83.00 level.
The loonie rose back to 1.0082 against the aussie, off its early low of 1.0101.On the upside, the loonie may locate resistance around the 0.97 area.
On the flip side, the loonie fell to a 4-day low of 1.4161 against the euro, from a 4-day high of 1.4114 hit at 8:15 pm ET. Continuation of the loonie's downtrend may see it challenging support around the 1.43 region.
by RTT Staff Writer
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