The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate advanced by around 0.95%.
After Australian economic data produced positive results, with particular reference to labour market data, the ‘Aussie’ (AUD) appreciated versus the majority of its most traded currency rivals. Additional appreciation is as a result of a softer US Dollar and higher gold prices.
The Canadian Dollar, meanwhile, softened versus many of its major competitors after domestic data failed to impress. Compounding ‘Loonie’ (CAD) losses was cooling crude prices amid serious oversupply in the US.
The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is currently trending in the region of 0.9781.
Labour market data pertaining to Australia produced unexpectedly positive results, allowing the South Pacific asset to appreciate versus the vast majority of its most traded currency peers. February’s Employment Change showed 15,600 newly employed which bettered the median market forecast of 15,000. In addition, Unemployment Rate came in at 6.3% which was below the market consensus of 6.4%.
Despite the positive results many experts see the labour results as a blip in an otherwise volatile market. ‘We do not view the improvement in the unemployment rate as a change in the upward trend,’ said Australia and New Zealand Banking group’s co-head of Australian economics Riki Polygenis.
‘Below-trend growth outcomes are consistent with a further gradual rise in the unemployment rate from here, with new hiring insufficient to keep pace with retrenchments in industries such as mining and manufacturing,’ she added.
The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate has fallen to a low of 0.9658.
Canadian economic data printed disappointingly, causing the ‘Loonie’ to soften versus the majority of its most traded currency rivals. Of particular detriment was January’s New Housing Price Index which rose by 1.4% on the year, below the median market forecast of 1.6%.
‘The abrupt shift in housing demand and supply conditions in some parts of the country indicate that potentially severe housing corrections have already begun. In Calgary, for example, the slump in existing home sales and jump in new properties listed for sale suggest that house prices will decline by 15% this year,’ said David Madani, economist with Capital Economics.
Falling oil prices also weighed on demand for the Canadian asset. The crude price declination is as a result of US oversupply. ‘Our view is that there is more downside than upside to crude prices in the near term,’ Société Générale SA said in a report, citing growing supply levels and lower refinery utilization as refiners perform seasonal maintenance.
Given the lack of data to curb the trend, and with oil prices continuing to slump, the Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is likely to hold gains during the European session. There is the potential for ‘Loonie’ volatility late on Friday night, however, with Canadian labour market data due for publication.
The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate climbed to a high of 0.9786.
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