CAD dips despite positive trade balance numbers
Daily Currency Update
The CAD was down around 0.47% at the time of writing against the USD and most other major currencies besides the AUD. The Canadian trade balance came in higher than expected at $2 billion versus the anticipated $1 billion. This showed a 2.7% increase in exports for Canada. Crude oil is down today around -2.45%, which looks to have impacted the CAD negatively as it is a commodity-linked currency.Key Movers
The US dollar index (DXY) bounced back to 105.72 early today as Federal Open Market Committee (FOMC) member Neel Kashkari spoke. Kashkari noted that inflation needs to come down to 2% and that economic health and data will indicate the policy stance, especially if there are more inflation increases. In data releases, the US Trade Balance report came in lower than expected at -$61.5 billion the expected -$59.7 billion. However, the USD is still up today against most of the major currencies.Europe’s Producer Price Index (PPI) data month-over-month came in as expected at 0.5%. There EUR has decreased today against the USD and stayed mostly flat against the GBP. German month-over-month industrial production came in lower than expected at -1.4% versus the anticipated -0.1%.
The Royal Bank of Australia (RBA) raised interest rates by 0.25% yesterday, as expected by markets. Despite this rate increase, the AUD is down against the USD around 1.05% at the time of writing.
Expected Ranges
- EUR/CAD: 1.4669 - 1.4706 ▲
- GBP/CAD: 1.6887 - 1.6932 ▲
- AUD/CAD: 0.8804 - 0.8907 ▼
- USD/CAD: 1.3685 - 1.3768 ▲