3 Min Read
* C$ at C$1.0144 to US$, or 98.58 U.S. cents * Aussie, Kiwi gain more from China data, Japanese easing * Fed minutes have little effect in Canada By Alastair Sharp TORONTO, April 10 (Reuters) - The Canadian dollar eked out slight 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. But the loonie, as Canada's currency is colloquially known, was overshadowed by commodity-related cousins better placed to take advantage of the Japanese stimulus and Chinese growth. "Canada is doing a little bit better, but it's a tiny move," said David Bradley, director of foreign exchange trading at Scotiabank. The currency mostly looked on as the greenback hit a four-year high against the yen after the U.S. Federal Reserve hinted it might end a bond-buying spree this year, just as the Bank of Japan cranks up its monetary easing. Bradley said that even U.S. equity markets rising to new record highs had not prompted much of a response from the loonie, bucking a historical trend. "The Canadian dollar really should be stronger, but those correlations don't seem to be happening these days," he said. "Whether it be gold or crude, they don't seem to be working at all." The loonie ended the session trading at C$1.0144 to the greenback, or 98.58 U.S. cents, compared with C$1.0163, or 98.40 U.S. cents, at Tuesday's North American close. "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. The price of Canadian government debt was mixed, with the two-year bond adding half a Canadian cent to yield 0.995 percent and the benchmark 10-year bond falling 32 Canadian cents to yield 1.809 percent.