Loonie Falls As Canadian Economic Growth Slows More Than Forecast

The Canadian dollar slipped against its key counterparts in European deals on Tuesday, as the Canadian economy expanded less than forecast in the first quarter.

Data from Statistics Canada showed that the GDP grew 2.4 percent on a seasonally adjusted annualized basis, slower than the expected 2.8 percent increase. Nonetheless, it was higher than the previous quarter's 0.8 percent gain.

On month, the economy shrank by 0.2 percent, sharper than February's 0.1 percent decline. Economists had been expecting the GDP to match the February's estimate.

Crude oil futures held near $50 a barrel as OPEC nations meet in Vienna this week, although no production cuts are expected.

The currency was mostly higher in Asian deals, amid rising oil prices.

The loonie declined to a 6-day low of 1.4598 against the euro, compared to 1.4529 hit late New York Monday. On the downside, the loonie may challenge support around the 1.48 area.

Data from Eurostat showed that the Eurozone jobless rate remained stable at the lowest level in more than four years in April.

The unemployment rate came in at 10.2 percent in April, the same rate as seen in March, and in line with expectations.

Reversing from an early 4-day high of 1.3017 against the greenback, the loonie slipped to 1.3083. The next possible support for the loonie may be located near the 1.32 mark.

Data from the Commerce Department showed that U.S. personal spending increased more than expected in the month of April.

The Commerce Department said personal spending jumped by 1.0 percent in April after coming in unchanged in March. Economists had expected spending to climb by 0.7 percent.

The loonie slipped to a weekly low of 0.9479 against the aussie, following an advance to 0.9366 at 5:00 pm ET. Continuation of the loonie's downtrend may see it finding support around the 0.96 region.

The loonie, having advanced to near a 5-week high of 85.51 against the yen in Asian trading, reversed direction and was trading lower at 85.02. The loonie is seen finding support around the 83.00 region.

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts expanded at the fastest pace in 10 months in April.

Housing starts grew by more-than-expected 9 percent year-on-year in April, the biggest growth since June 2015, when it climbed 16.3 percent. Economists had expected 4.1 percent growth after posting 8.4 percent increase in March.

Looking ahead, U.S. Chicago PMI and consumer confidence index for May are slated for release shortly.