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Canada dollar closes nearly flat despite data

TORONTO: The Canadian dollar closed relatively steady on Wednesday from Tuesday's finish, with the mild interest from corporate and other players but not enough to push it out of a range.

The Canadian dollar closed at C$1.4567 (68.65 US cents) on Wednesday after closing at C$1.4555 (68.70 US cents) in the previous session.

"We've pulled back from the highs," said Stephen Wateridge, managing director of corporate foreign exchange at CIBC World Markets.

The currency dipped to the C$1.4620 area during the North American session but corporate investors moved in to buoy it a bit. "That was enough to encourage a little bit of interest from corporates," Wateridge said.

The dollar was largely unaffected by Wednesday's news that housing starts in Canada rose 11.9 percent in February to 168,000 units, exceeding analysts' expectations of 152,375 units.

The Canadian dollar or loonie, nicknamed for the bird on the coin, is likely to continue trading in a range of C$1.4510 to C$1.4630, Wateridge added. "Two-way business is really keeping it in a familiar range."

Players on the International Monetary Market in Chicago were also selling the Canadian unit on Wednesday, market watchers said.

In cross-trading against major currencies, the Canadian dollar was at 73.53 yen and at C$1.3988 against the euro. The Canadian dollar was at A$1.1262 against the Australian dollar.

Looking ahead, Bank of Canada Governor Gordon Thiessen is scheduled to talk in New York on Thursday, speaking on "The conduct of monetary policy when you live next to a large neighbour". His speech may provide some new directions for the currency, Wateridge said.-Reuters