The Canadian dollar was expected to start the four day week in a strong fashion, before its own local data slipped up. It had benefited in the first instance from the news that the US trade deficit was at its highest level since 1996, and capitalised on this initially, but was unable to maximise this gain thanks to a disappointing trade report from Canada.
Also on Tuesday, the Reserve Bank of Australia cut its interest rate as expected – lowering its benchmark rate interest rate by 0.25% from 2.25% to a record-low 2%. Normally this would weaken the currency but it had been long expected and it should also help boost the Australian economy.
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