TORONTO - The Canadian dollar was higher Monday amid mixed economic data from China.
The loonie edged up 0.21 of a cent to 91.70 cents US as the world's second-largest economy says its export growth accelerated in May, despite a decline in imports.
Data released by China's General Administration of Customs on Sunday showed exports rose seven per cent in dollar terms, up from a 0.9 per cent increase in April and rather large slump in February and March.
Imports declined 1.6 per cent in May after inching up 0.8 per cent in April.
There is little economic news this week that is expected to guide the Canadian dollar.
"With the Bank of Canada policy update and jobs data release completed last week and no real catalyst provided, the Canadian dollar should be range-bound for the most part and move directionally with risk appetite. Growth and inflation are key themes to follow," wrote Rahim Madhavji of Knightsbridge Foreign Exchange in a commentary.
Commodity markets were mixed as the July crude in New York climbed $1.50 cents higher to US$104.16 a barrel.
August bullion gained 90 cents to US$1,253.40 an ounce, while July copper was unchanged at US$3.05 a pound.
Sadiq Adatia, chief investment officer for Sun Life Global Investment, said that commodities are pulling back a bit because equities have been so strong.
"Gold doesn't make sense when the economy is good and the risk appetite is there," he said. "Where gold will be beneficial is when inflation creeps back in... so I don't see an upside in gold right now."
Adatia believes the loonie is overvalued, and that the currency, which relies heavily on commodities, will come down to the 90-cent range.
Meanwhile, the Canada Mortgage and Housing Corp. says housing starts increased to a seasonally adjusted annual pace of 198,324 homes in May, up from 196,687 in April.
The results were better than expected as economists had expected the pace to come in at 185,000, according to Thomson Reuters.