The Canadian dollar moved lower Wednesday morning amid declining commodity prices while traders looked to fresh readings on the U.S. economy.

The loonie slipped 0.04 of a cent to 101.2 cents US amid other data showing Canada's industrial produce price index was down 0.5 per cent in July compared with June. Statistics Canada said the decline was mainly attributable to chemical products and motor vehicles and other transportation equipment.

The agency also said the Raw Materials Price Index rose 0.9 per cent, largely because of higher prices for mineral fuels and vegetable products.

In the U.S., the second revision to second quarter gross domestic product growth showed the U.S. economy grew at an annualized rate of 1.7 per cent, up from the original estimate of 1.5 per cent.

The Federal Reserve releases its so-called Beige Book mid-afternoon Wednesday. It is hoped the Fed's latest regional economic survey will supply clues as to whether the U.S. economy has weakened to a point where the central bank would launch another round of stimulus.

Traders looked ahead to a key speech Friday by Fed chairman Ben Bernanke at the Fed's annual retreat at Jackson Hole, Wyo. Expectations for another round of economic stimulus have risen over the past couple of weeks after the minutes from the Fed's last interest rate meeting Aug. 1 showed more members wanting to see the central bank take more action to revive the economy.

And then last Friday, the Wall Street Journal reported that Bernanke had written a Republican lawmaker to say there is more the Fed could do to help the economy.

But those expectations have taken place against a background of steadily improving economic data, including better than expected job creation numbers, improved retail sales and more indications of an improving housing sector.

There was some dismay Tuesday over data showing slipping consumer confidence in the summer prompted by employment worries.