The Loonie increases after the release of Chinese trade data and positive credit growth
Friday 12 April, 2019
Daily Currency UpdateCAD - Canadian DollarThe USD/CAD is trading at 1.3320, representing a fall of 0.5 percent (stronger Loonie) with the main reason being, you guessed it, the increase in the price of crude oil. The Loonie increased in price in overnight trading after news from China of the immense growth of its credit and the improvement of its trade surplus.On the release front, Canadian home prices fell in March for the sixth straight month as most significant markets weakened. Early today, the Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family homes, showed prices fell 0.3 percent last month from February. Of course, the Loonie is shrugging off the news and remaining strong. Technically speaking, the USD/CAD pair might test the 1.3300 handle as a support level and it has a first resistance level to the upside at 1.3351.
Key MoversVery positive economic news came from China, including credit growth and a trade surplus with the US, which increased to US$ 20.5 billion in March. Trade data released by China in the overnight session showed that exports rose 14.2 percent from a year earlier in March against forecasts calling for a rise of 8.7 percent and after a sharp drop in February. The Chinese government efforts to stimulate its economy were shown in aggregate financing data in March, which came in at 2860 billion Yuan (USD 426 billion), more than 1 trillion Yuan above the estimates. Crude oil increased in price in overnight trading after news from China.
- USD/CAD: 1.3299 - 1.3361 ▼
- EUR/CAD: 1.5050 - 1.5145 ▲
- GBP/CAD: 1.7423 - 1.7491 ▼
- AUD/CAD: 0.9533 - 0.9581 ▲
- NZD/CAD: 0.8990 - 0.9043 ▲