Tough times for the Canadian dollar, better times for the Australian dollar

It was a tough day for the Canadian economy yesterday as the Canadian economy fell against most currencies, including a 0.5% drop against sterling. Canadian stocks have fallen for a sixth day in a row, the worst performance since August. Just as it was in August, the fall can be attributed to weak industrial data in China. However, increasing stockpiles of commodities in the US has also lessened the value of Canadian commodities and by extension, their currency. Today the new house pricing index is out at 1.30pm and is expected to be worse than last month’s – any surprises could provide a little support for the Canadian currency.

The Australian dollar has gained nearly three cents against sterling first thing this morning as the Australian unemployment rate fell to 5.9% reducing expectations of an imminent cut in their interest rate.

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