Dollar climbs in the Canadian economy grew in April at the fastest pace this year

The Takeaway: [the faster growth of Canadian GDP this year in April] > [Pickup in mining and oil and gas activity] > [CAD strengthens]
The Canadian economy grew at a faster pace than expected in April, led by increased activity in the mining and oil and gas extraction sector. The gross domestic product (GDP) of the Canada increased by 0.3% in April, the fastest on the months rate this year, after cutting of 0.1% in March. On an annual basis, GDP expanded 2.0% in April, after growth of 1.7% in each three months previously. Forecasts of the consensus of economists surveyed by Bloomberg News had called for growth of 0.2 per cent on a month and an annualized 1.8 percent growth rate.
According to a report published by Statistics Canada, mining and oil and gas extraction has rebounded in April after that of temporary stops the difficulties of mining production and led to a slowdown in February and March. Mining and oil and gas extraction increased by 2.7% in April after decline of 2.0% in February and 1.1% in March. Trade in large trade rose 1.2% in April, climbing for the fifth month running. During this time, production decreased by 0.3% and construction decreased by 0.1% in April.
Chart 1-minute USDCAD: 29 June 2012
Graph created with the scope of the market - prepared by Chen Wen - Tzu
Immediately after the output, the stronger Canadian dollar against the U.S. dollar as the strongest GDP increases support for a rate hike by the Bank of Canada in the coming months. At the time of this report, the pair USDCAD was trading at C$ 1.0167.

! Loonie Falls Despite Surge in April Housing Starts To Fastest Pace Since 2007

THE TAKEAWAY: [Canadian housing starts accelerated in April for fifth straight month to fastest pace since September 2007] > [Continuing strength in housing market] > [CAD weakens vs. USD]
Housing starts in Canada unexpectedly accelerated in April for the fifth straight month to its fastest pace since September 2007. The Canada Mortgage and Housing Corporation reported a large jump to 244,900 housing starts at a seasonally adjusted annual pace in April, while March’s figure was revised slightly downwards to 215,200 from 215,600 originally reported. The median forecast of 21 economists surveyed by Bloomberg News had called for a slowdown to 204,000 housing starts in April. New starts soared by 28.8 percent in April from a year ago, compared with March’s year-on-year rate of 16.7 percent.
The pickup in housing starts in April was led by a surge in multi-family homes in urban areas, which recorded a 27.4 percent gain to 158,500 new starts. Meanwhile, housing starts in rural areas contracted by 19.0 percent from a month ago, reversing the 10 percent gain in March.
April's housing starts data follows yesterday’s news that the number of residential building permits approved had declined by 1.3 percent in March. This could indicate that we may see slight moderation in the coming months in the recent strength shown by the Canadian housing market, in what some analysts think is a housing bubble.
USDCAD 1-minute Chart: May 8, 2012

Chart created using Strategy Trader – Prepared by Tzu-Wen Chen
Despite the stronger-than-expected print, the Canadian dollar tumbled against the U.S. dollar in the minutes following the data release. The loonie fell as much as 20 pips in the first 15 minutes from pre-announcement levels, and despite a slight retracement, continued to trade weaker at C$0.9972 against the greenback at the time of this report.