CANADA FX DEBT-C$ ekes out gains on China data

Wed Apr 10, 2013 9:35am EDT
 
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* C$ at C$1.0156 to US$, or 98.46 U.S. cents
    * Aussie, Kiwi gain more from China data, Japanese easing

    By Alastair Sharp
    TORONTO, April 10 (Reuters) - The Canadian dollar eked out
minor gains against its U.S. counterpart on Wednesday, helped by
positive data from China that boosted a range of currencies seen
as most sensitive to global growth.
    The loonie, as Canada's currency is colloquially known, was
overshadowed by commodity-related cousins better placed to take
advantage of Japanese stimulus and Chinese growth.
    "The Canadian dollar is being left behind by the other
commodity currencies, with good rallies in Aussie and Kiwi in
particular," said Adam Cole, global head of foreign exchange
strategy at Royal Bank of Canada.
    Cole said the Bank of Japan's drastic monetary easing plan
announced last week has pushed Japanese investors to seek yield
elsewhere, which favors the higher interest rates offered in
Australia and New Zealand.
    The New Zealand currency hit its highest point
against the loonie since mid-2005.
    China, the world's top buyer of copper, soy and iron ore,
and the second-largest importer of crude oil after the United
States, said imports of key commodities rebounded in March.
 
    While that news is broadly positive for a country such as
Canada that counts commodities among its main exports, the
benefit is amplified for similar economies in closer proximity
to the world's second largest economy.   
    At 9:15 a.m. (1315 GMT) the Canadian dollar was
trading at C$1.0156 to the greenback, or 98.46 U.S. cents,
compared with C$1.0163, or 98.40 U.S. cents, at Tuesday's North
American close.
    The price of Canadian government debt was flat to lower
across the curve, with the two-year bond off half a
Canadian cent to yield 1.000 percent, while the benchmark
10-year bond fell 16 Canadian cents to yield 1.789
percent.