Ahead of the release of US factory orders data the Canadian Dollar was able to recover ground against several of its most traded rivals as commodity-driven assets were boosted by the news that retail sales in Australia surged by more than expected in September.
The Canadian Dollar Exchange Rate was in the region of 0.6025 against the British Pound as of 14:45 GMT
Sales in the South Pacific nation surged by 0.8 per cent month-on-month rather than the 0.4 per cent expected.
This positive news comes just before the Reserve Bank of Australia’s currency meeting. Concerns that the RBA might make allusions to a future rate cut have worn on the ‘Aussie’ in recent weeks, but with domestic demand proving strong the central bank may chose to refrain from mentioning future rate adjustments tomorrow.
As London-based currency strategist Adam Cole observes; ‘The big rally in the ‘Aussie’ Dollar seems to have pulled the other commodity currencies along with it. Till we get to Friday, the domestic risk is limited.’
On Friday Canadian employment data will be published. Economists are expecting the economy to have added 13,500 positions in October with the unemployment rate rising from 6.9 per cent to 7 per cent.
An increase in China’s non-manufacturing PMI also boosted commodity-driven currencies overnight. The gauge advanced from 55.4 to 56.3 in October, pushing further above the 50 mark separating growth from contraction.
The CAD/GBP exchange rate hit a low of 0.6002
However, while the ‘Loonie’ enjoyed gains against currencies like the US Dollar it fluctuated against the Pound as the British asset adopted a bullish relationship with its peers following the release of stronger-than-anticipated UK construction PMI.
The unexpectedly good result inspired this upbeat response from David Noble, the Chartered Institute of Purchasing & Supply’s Chief Executive Officer, ‘The future is looking bright for the UK construction industry as it soars into the final quarter with its strongest performance in over six years, boosted by a strengthening surge in activity broadening out across all sectors. […] Particularly impressive is the commercial sector, which registered the fastest rate of growth since April 2012.’
If tomorrow’s UK services PMI also beats expectations the ‘Loonie’ could extend declines against its British peer.
Canadian data to watch out for in the days ahead includes a building permits report and the Ivey PMI.
News from China, Australia and the US could also affect the commodity-driven Canadian Dollar.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9614 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7124 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6025 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0125 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1519 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6604 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0398 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4036 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8615 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9880 >
(Correct as of 14:45 GMT)
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