BUSINESS

Loonie shifts higher after trade deficit shrinks in Canada, even more in U.S.

08/06/2013 09:19 EDT | Updated 10/06/2013 05:12 EDT
TORONTO - The Canadian dollar moved slightly higher on Tuesday after a report showed the country's trade deficit shrank for June.

The loonie ended the session ahead 0.13 of a cent to 96.38 cents.

Statistics Canada said the trade deficit was $469 million in June, a decline from a revised $781 million deficit a month earlier. The agency had originally reported the May deficit was $303 million.

Meanwhile, south of the border, the U.S. trade deficit narrowed sharply in June to its lowest level in more than 3 1/2 years. Exports rose to all-time high and imports declined, signs that economic growth is stronger than previously thought.

The U.S. Commerce Department says the June deficit fell 22.4 per cent to $34.2 billion. That's the lowest since October 2009 and down from May's imbalance of $44.1 billion, which was revised down.

In commodities, December bullion pulled back $19.90 to US$1,282.50 an ounce, falling to its lowest level in nearly three weeks. September copper rose half a cent to settle at US$3.17.

The September crude contract on the New York Mercantile Exchange moved down $1.26 to settle at US$105.30 a barrel.