Canadian Dollar Slides Amid Risk Aversion

The Canadian dollar drifted lower against its major counterparts in the early European session on Monday amid risk aversion, as weak China data stocked worries over global growth, while the attacks on Saudi's crude facilities raised geopolitical worries.

Industrial output growth unexpectedly weakened to 4.4 percent in August from the same period a year earlier, the slowest pace since February 2002 and down from 4.8 percent in July.

Retail sales and investment figures also disappointed amid rising trade pressure and softening domestic demand.

Drone attacks at Saudi Arabia's oil production facilities in Abqaiq and Khurais heightened geopolitical tensions in the Middle East.

The currency has been trading lower against its major counterparts in the Asian session, excepting the euro.

The loonie dropped to 1.3261 against the greenback and 1.4692 against the euro, from its early highs of 1.3209 and 1.4635, respectively. The next possible support for the loonie is seen around 1.35 against the greenback and 1.49 against the euro.

The loonie edged down to 0.9120 against the aussie, off an early high of 0.9071. If the loonie slides further, 0.945 is likely seen as its next support level.

The loonie fell back to 81.32 against the yen, heading to pierce an early 1-week low of 81.24. The loonie is seen finding support around the 78.5 mark.

Looking ahead, Canada existing home sales for August and New York Fed's empire manufacturing activity for September are due in the New York session.