The ‘Loonie’ continued to gain on its American counterpart today as the Reserve Bank of Australia opted to cut its benchmark rate to a record low.
The Canadian Dollar Exchange Rate was in the region of 0.9946 against the US Dollar as of 14:20 GMT
The commodity-driven currency advanced on Friday following the publication of better-than-anticipated US employment data and posted further gains yesterday as Canadian building permits increased by more than expected.
According to Statistics Canada the value of permits jumped by 8.6 per cent in March, significantly more than the previous month’s revised 1.5 per cent gain.
In response to the data one Canadian forex expert asserted: ‘Some of the data is coming out a little bit better than expected. Canada’s doing a little bit better – when it weakened off in the middle part of last month, it didn’t weaken off quite as far as it did in March. The weakness is a little shallower with each move so that seems to be trending in Canada’s favour.’
Today the ‘Loonie’ was able to extend these latest gains, benefiting from increased risk-appetite amongst investors following the RBA’s decision. The commodity-driven currency also recorded a notable advance against a broadly softening ‘Aussie’.
As Jack Spitz of the National Bank of Canada stated: ‘The catalyst was Aussie-Canada selling. It was on the back of the RBA announcement, which made the Aussie Dollar weaker, but really the motivation for the move this morning was likely on the back of better-than-expected German factory orders.’
This morning figures issued by the Berlin Economy Ministry showed that German factory orders advanced by 2.2 per cent in March, month-on-month, despite economist expectations for a 0.5 per cent fall.
The data has bolstered hopes for German economic recovery, consequently improving the Eurozone’s prospects.
The next piece of influential Canadian data to watch out for is housing starts. The figures are due for release tomorrow at 13:15 GMT and economists are expecting a decrease from March’s 184,000 figure to 175,000.
A better than expected result could see the Canadian Dollar climb further.
Current Canadian Dollar (CAD) Exchange Rates
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9946 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7584 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6404 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9789 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1621 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5608 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0054 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3184 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8581 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0217 <
(Correct as of 14:20 GMT)
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