Canadian dollar lower amid mixed commodities, strong U.S. retail sales data

TORONTO – The Canadian dollar was lower Wednesday amid mixed commodity prices and positive economic news from Canada’s biggest trading partner.

The loonie was down 0.07 of a cent to 97.39 cents US.

U.S. retail sales gained 1.1 per cent in February, up from a 0.1 per cent rise in January. The showing was also much better than the 0.5 per cent rise that economists had expected.

“Add in small upward revisions to the prior month as well and overall it was a strong set of numbers, supportive of our call that first-quarter GDP will come in at around a three per cent annualized pace,” said CIBC World Markets economist Andrew Grantham.

The April crude contract on the New York Mercantile Exchange gained 41 cents to US$92.95 a barrel.

May copper edged down one cent to US$3.54 a pound while May gold bullion dipped 70 cents to US$1,591 an ounce.

The eurozone debt crisis focused investor attention Wednesday as Italy’s borrowing costs rose in the country’s first bond auction since ratings agency Fitch cut the government’s credit rating last week.

Italy sold €3.32 billion of two-year bonds at a yield of 2.48 per cent, up from 2.30 per cent in a mid-February sale. Demand weakened, with bids exceeding supply 1.28 times versus 1.37 in the February auction.