TORONTO: The Canadian dollar gained slightly against the US dollar on Monday, as crude oil pulled back after disappointing Chinese trade data, with the currency trading in a narrower range after having hit a five-week low against the greenback on Friday.
China's trade data restrained risk appetite, with US stock index futures edging lower. China's exports and imports both fell more than expected.
At 9:22 a.m. ET (1422 GMT), the Canadian dollar was trading at C$1.3290 to the greenback, or 75.24 US cents, slightly stronger than the Bank of Canada's official close of C$1.3296, or 75.21 US cents.
It had hit C$1.3318 on Friday after strong US jobs data raised the prospect of a December rate hike from the Federal Reserve.
US crude prices were down 0.11 percent to $44.24, while Brent crude added 0.57 percent to $47.69.
Canadian housing starts pulled back in October, according to Canada Mortgage and Housing Corporation. The annualized data was not far off the median estimate in a Reuters poll.
The market will also be sensitive to comments from Federal Reserve Bank of Boston President Eric Rosengren, speaking on the
economic outlook, at 1230 p.m. ET (1730 GMT).
Rosengren is seen as a dove, so any nod toward December being a "live" meeting may carry more weight for the market, with the debate already shifting toward the extent of Fed tightening rather than when the first rate hike will occur.
Canadian government bond prices were lower across the maturity curve, with the two-year price down 2 Canadian cents to yield 0.688 percent and the benchmark 10-year falling 17 Canadian cents to yield 1.734 percent.
The Canada-US two-year bond spread was -21.0 basis points, while the 10-year spread was -61.4 basis points, both little changed on the day.
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