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Canada dollar ends flat after wandering in range

CANADA: The Canadian dollar closed at C$1.4460 (69.16 US cents) on Tuesday after closing at C$1.4465 (69.13 US cents) in the previous session.

The currency weakened off overnight in a move some market watchers linked to weakness in the euro against the US dollar.

But the currency rebounded from overnight lows in a move triggered largely by interest on the International Monetary Market, some traders said.

Ebata said the Canadian currency remains fairly healthy, and will not likely deteriorate sharply unless it breaks below C$1.4600, the bottom of its recent range.

He put the top of the range at C$1.4300.

"It's in good shape. For the micro traders, I think it's kind of fooled people - guys getting long and guys getting short and then getting stopped out and stuff," Ebata said.

Recent market action has been indecisive, he added.

"I don't see where we're headed. It's performing quite well. Probably not as well as everyone would have wanted given our economic numbers, but, hey, that's Canada," he said. "As it stands right now, I'm pretty neutral here."

If the US dollar/yen breaks above 110, that may incite the US dollar to move higher against the Canadian unit, he added. "Until that happens, I think at this point in time we're just going to hover in this range," he said.

Trading in the currency was fairly stagnant, observers said. "Chicago's dead, just dead today," Ebata said.

In cross-trading against major currencies, the Canadian dollar was at 75.72 yen CADX and at C$1.4243 against the euro. The Canadian dollar was at A$1.0943 against the Australian dollar CADX.-Reuters