The Canadian dollar reached a five- week high against its U.S. counterpart as Chinese data showed growth for the world’s biggest consumer of metals and energy and supported the currencies of commodity-exporting nations.
The loonie, as the currency is nicknamed, pared its advance as commodities prices erased gains and before employment data and central-bank policy statements later this week. China’s manufacturing expanded to an 11-month high, according to the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing April 1. Australia’s central bank kept its benchmark interest rate unchanged to match a half- century low in response to a recovery in household spending.
“Today’s move was in line with the better performance of commodity currencies,” Greg T. Moore, currency strategist at Toronto-Dominion Bank, said by phone from Toronto. “There is a little bit further room for extension before headwinds start to send it lower.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.