TORONTO - The Canadian dollar was slightly lower Thursday as an important gauge of the country's trade deficit increased less than expected during the fourth quarter.
The currency dipped 0.04 of a cent to 89.82 cents US as Statistics Canada reported that the current account deficit increased $1.2 billion to $16 billion in the fourth quarter. The agency said that the increase was mostly because of a larger deficit on trade in goods. However, the reading was less than the $16.8 billion deficit estimate.
The current account is the sum of the balance of trade — exports of goods and services less imports — net income from abroad and net current transfers.
In the U.S., the Commerce Department said orders for durable goods declined a seasonally adjusted one per cent in January compared with December. Much of last month’s decline was driven by a 20.2 per cent drop in demand for commercial aircraft, a volatile month-to-month category. But a key category that reflects business investment rose a solid 1.7 per cent.
Traders also looked to remarks later in the morning from U.S. Federal Reserve chair Janet Yellen.
Yellen's testimony before the Senate Banking Committee was supposed to take place earlier this month but was postponed because of a fierce winter storm in Washington. Investors will be looking to see how tough weather conditions that have plagued many areas of the U.S. this winter have impacted the economy and how the Fed plans to further taper its bond purchases.
Traders also looked ahead to other key data coming out over the next few days.
The latest economic growth figures for Canada and the U.S. will be released Friday morning.
Beyond that, traders awaited next interest rate announcement from the Bank of Canada next Wednesday and Canadian and U.S. jobs data at the end of the week.
Commodity prices were mixed with the April crude contract in New York off four cents to US$102.55 a barrel.
March copper was down two cents at US$3.19 a pound while April bullion gained $3.60 to US$1,331.60 an ounce.
