By Commodity News Service Canada
Winnipeg, August 5 – The Canadian dollar was lower on Tuesday amid mixed economic news from China and the eurozone, analysts say.
At 8:45 CDT Tuesday morning, the Canadian dollar was down 0.2 of a cent to US$0.9132 or US$1 = C$1.0919.
Service industries in China, the world’s second biggest economy, grew at the slowest rate in July since November 2005. The HSBC index of China service businesses activity based on a survey of 400 companies fell to 50.0 in July from 53.10 in the previous month. Traders say that this weak figure indicates the impact of a slowdown in China’s property market.
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Other data pointed to signs that the eurozone economy continues to mend.
The 18-country eurozone rose a point to a three-month high of 53.80 in July, according to financial information company, Markit.
Growth in the eurozone has been minimal since emerging from its longest ever recession over a year ago, analysts say. Markit’s July survey points to a quarterly growth rate of 0.4 per cent, which equates to an annualized rise of just 1.6 per cent.
Later this morning, the U.S. Institute for Supply Management’s non-manufacturing index is projected to show greater expansion, climbing 56.5 in July, up from 56 in June.
Canada’s major economic report is scheduled to be released this Friday, August 8.
The TSX was down 115.47 points to 15,215.26 at 8:45 CDT Tuesday morning.
