By Commodity News Service Canada
Winnipeg – May 7/13 – CNS – The Canadian dollar was trading
at a stronger level versus the US currency in late North American
activity on Tuesday. Positive economic news out of Australia
helped to send the Canadian unit to a three-month high against
the US dollar during the session, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0041 (99.59 US cents). This compares with Friday’s late
North American quote of C$1.0068 (99.32 US cents).
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The Canadian dollar was one of the few currencies that
benefited from the Reserve Bank of Australia’s unexpected
decision to cut its overnight policy rate by 25 basis points to a
record low 2.75% overnight and leaving the door open for further
monetary stimulus.
Adding to the upswing in the value of the Canadian dollar
were the advances to new record highs in the North American
equity sector, analysts said.
Technical levels suggest the Canadian dollar’s shift above
parity may come sooner than later, with Friday’s jobs report a
potential catalyst for the move, brokers said.
Canadian bonds ended lower along the yield curve on Tuesday
with investors willing to take on riskier assets behind some of
Weakness in the bond market also reflected fixed-income
investors selling off safe-haven assets ahead of additional
supply entering the market.
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