2024.01.1614:34:00UTC+00Canadian Dollar Extends Gains After Inflation Data

The Canadian dollar extended gains in the New York session on Tuesday, as the nation's annual inflation rose in line with estimates in December.

Data from Statistics Canada showed that the consumer price index rose 3.4 percent year-on-year in December, following a 3.1 percent increase in November. The rate matched expectations.

On a seasonally adjusted monthly basis, consumer prices moved up 0.3 percent, the same rate as seen in the previous month.

Core CPI, excluding food and energy, eased to 0.2 percent from 0.3 percent last month.

The loonie climbed to a 5-day high of 108.98 against the yen and a 1-1/2-month high of 0.8883 against the aussie, off its early lows of 108.26 and 0.8946, respectively.

The loonie rose to a 4-day high of 1.4634 against the euro, from an early nearly 5-week low of 1.4726.

The loonie recovered to 1.3444 against the greenback, reversing from an early nearly 5-week low of 1.3500.

The loonie may find resistance around 110.00 against the yen, 0.875 against the aussie, 1.44 against the euro and 1.30 against the greenback.