The Canadian dollar was yesterday’s main loser, tumbling after the BoC business survey pointed to a moderation in sales growth, which, in our view, suggests that the Bank is nowhere close to start thinking about hikes again. The Aussie fell as well, after the minutes from the latest RBA meeting placed more emphasis to the rate-cut case. Tonight, during the Asian morning Wednesday, the spotlight is likely to fall on New Zealand’s inflation data, as well as China’s GDP, both for Q1.
BoC Business Survey Points to Moderation
The dollar traded higher against all but one of the other G10 currencies on Monday and during the Asian session Tuesday. It gained the most against CAD, AUD and NZD, while it gained the least versus EUR and GBP. The currency against which the dollar failed to capitalize was JPY, with USD/JPY trading virtually unchanged.
Having said all that though, the commodity-linked currencies felt the heat of individual stories more than the ease in risk appetite. The Canadian dollar, which was the...
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