Positive US Indicators Bring CAD Higher

The Canadian dollar rallied today as positive macroeconomic data from the United States improved prospects for Canadian exports, increasing the appeal of the nation’s assets. The currency remained below the opening level against the Japanese yen and dropped versus the Australian dollar.

Usually, good reports from the USA are positive for CAD as the country is the biggest trading partner of Canada. Yet nowadays any good news makes traders worry that the Federal Reserve will reduce stimulus. Such worries did not prevent the Canadian currency from rallying today.

CAD was not the only commodity currency to rally today as AUD also went up. In fact, the Australian currency performed much better that its Canadian peer due to the unexpectedly good employment report.

USD/CAD fell from 1.0208 to 1.0155 as of 20:27 GMT today. EUR/CAD declined from 1.3615 to 1.3575 after touching 1.3672 — the strongest price since February 1. At the same time, CAD/JPY rebounded from 91.76 to 93.74, but remained below the opening of 93.97. AUD/CAD climbed from 0.9678 to 0.9797.

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