Canadian dollar remains in focus amid intervention fears The dollar stayed near 14-month lows on Wednesday after U.S. retail sales topped estimates, adding to confidence stemming from better-than-expected earnings from major companies and good economic data overseas. The dollar index (DXY 75.57, -0.41, -0.54%) , which tracks the greenback against a trade-weighted basket of six major currencies, was at 75.644, down from 75.941 in late North American trading Tuesday. The index touched the lowest since August 2008 in earlier trading. See full story. Excluding automobiles, U.S. retail sales increased 0.5% in September, while analysts surveyed by MarketWatch expected the figure to rise 0.3%. See more on retail sales. Including auto, sales dropped 1.5%, largely due to the end of the cash-for-clunkers program. Economists predicted a 2.3% drop in the headline level. U.S. stock index futures pointed to a higher opening after J.P. Morgan Chase (JPM 47.43, +1.77, +3.88%) and Intel Corp. (INTC 21.39, +0.90, +4.39%) outpaced expectations Rising equities have spelled weakness for the U.S. dollar as investors abandon the former safe haven for riskier assets. The U.S. dollar had been lower in earlier trading as Chinese and European data boosted investor appetite for risky assets, strategists said. The dollar trimmed a loss versus the Japanese yen, however, to trade at 89.68 yen, little changed from Tuesday. The euro traded at $1.4884 versus the dollar, up from $1.4851 late Tuesday. Earlier, the euro pressed above $1.49 for the first time in more than a year. The statistics agency Eurostat said output rose 0.9% for the month, leaving it down 15.4% compared to August 2008. Economists had forecast a stronger 1.1% monthly increase, while the annual figure was in line with expectations. Upward revisions to data in previous months point "to a stronger picture than we had expected before today's release," said Marco Valli, chief Italian economist at UniCredit MIB. "Accordingly, risks to our 0.4% GDP forecast for [the third quarter] are to the upside." In Asian trading, a report showed China's trade surplus slid less than forecast in September. See full story. Separate data showed China's exports contracted at a slower pace last month. The smaller-than-expected export fall led to speculation that estimates for third-quarter Chinese growth may be revised higher, which helped lift Australian shares as well as the Australian dollar, said Jane Foley, research director at Forex.com Rising Australian exports to China have allowed Australia to avoid recession and helped fuel a rise in Australian consumer confidence to a two-year high despite the recent rate hike by the nation's central bank, she said. The Australian dollar gained 0.7% versus the U.S. unit to 91.21 U.S. cents, setting another 14-month high versus its U.S. counterpart.

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