Canada’s dollar gained against its U.S. counterpart for a third day as the Reserve Bank of Australia cut its benchmark interest rate to a record 2.75 percent, intensifying the search for higher-yielding assets.
The loonie, as the currency is nicknamed for the image of the waterfowl on the C$1 coin, gained against the majority of its most-traded peers as German factory orders unexpectedly increased in March, suggesting the region’s largest economy is starting to grow again and spurring risk appetite.
“The catalyst was Aussie-Canada selling,” Jack Spitz, managing director of foreign exchange in Toronto at National Bank of Canada (NA), said of the loonie’s rally. “It was on the back of the RBA announcement, which made the Aussie dollar weaker, but really the motivation for the move this morning was likely on the back of better-than-expected German factory orders.”
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