CANBERA (Alliance News) - The Canadian dollar drifted lower against its most major rivals in European deals on Monday, as oil prices fell after weak China factory activity in October, which aggravated concerns about slowing demand in world's second largest economy.
Crude for December delivery fell USD0.80 to USD45.79 a barrel.
China's official manufacturing PMI came in unchanged at 49.8 in October and growth in the country's services sector slowed to its lowest level in seven years, while a private reading on the country's manufacturing sector contracted for an eighth straight month.
Fears over supply glut intensified after Russia reported a record high oil output in October.
Oil production in Russia hit a post-Soviet record of 10.78 million barrels a day during October, data from the Energy Ministry showed. That's up from September output of 10.74 million barrels a day.
The loonie has been trading in a negative territory against the yen, euro and the aussie in Asian trading. Against the dollar, it held steady.
In European deals, the loonie fell to 1.3116 against the greenback and 1.4457 against the euro, from its early highs of 1.3064 and 1.4405, respectively. The loonie is seen finding support around 1.32 against the greenback and 1.46 against the euro.
The loonie edged down to 0.9363 against the aussie, from its early near 4-week high of 0.9300, and held steady thereafter. If the loonie extends slide, it is likely to find support around the 0.95 region.
Although the loonie ticked down to 91.94 against the yen at 5:30 am ET, it reversed direction shortly afterwards. The pair was trading around Friday's closing quote of 92.21.
Looking ahead, Canada and U.S manufacturing PMI reports for October and US construction spending data for September are slated for release in the New York session.
At 12:00 pm ET, Federal Reserve Bank of San Francisco President John Williams will deliver opening remarks at the San Francisco Federal Reserve event.
