- It was an important day for the Canadian dollar yesterday but interest rates remained at 1%, which saw the currency slightly strengthen against sterling. Canada’s economy continues to do well in comparison to those of most other economies, often closely tied to the US economy. This has not just been thanks to the US – higher inflation, low unemployment and increased growth from last quarter have had a key part to play. Now the next important step will be what the Governor of the central bank has to say on how growth will be affected by weakness in China, as well as by oil prices. Tomorrow more data is released, most notably the Purchasing Managers’ Index (PMI).
- The Australian dollar bean to steady yesterday after weak growth data was released, which saw the currency lose further ground against its major peers. The steadying of the currency was helped by better Chinese service data. The Australian economy had slower growth in the third quarter, at a worrying 0.3% – the slowest the country has seen since the start of 2013. This morning we saw a raft of data out from Australia, retail sales (forecast at 0%), trade balance for goods and services (forecast to come out better than last month at -1.9 billion, to last month’s -2.2 billion) and the markets initial reaction has been one of further Australian dollar weakness.
Are you looking to buy or sell currencies? Contact your trader now for live rates, news and currency purchasing strategies.