2 Min Read
* C$ rallies as high as 84.29 U.S. cents
* Improved market sentiment drives gain
* Bond prices stuck lower across the curve
By Frank Pingue
TORONTO, April 30 (Reuters) - The Canadian dollar charged to its highest level in over three months on Thursday as an improved market sentiment helped the domestic currency break through a key technical level.
Canada's currency rallied overnight as high as C$1.1864 to the U.S. dollar, or 84.29 U.S. cents, its highest level since Jan. 9, outperforming the other commodity-based currencies like the Australian and New Zealand dollars.
By 7:30 a.m. (1130 GMT), the currency retreated slightly to C$1.1907 to the U.S. dollar, or 83.98 U.S. cents, up comfortably from C$1.2030 to the U.S. dollar, or 83.13 U.S. cents, at Wednesday's close.
The domestic currency had followed other commodity-based currencies higher on Wednesday but it was unable to strengthen past C$1.1990, 83.40 U.S. cents, despite several attempts.
"A continuation of risk appetite overnight gave the market enough reason to push through that (level) and once it broke through C$1.1990 it played catch up with Aussie dollar and as a result it outperformed overnight," said Matthew Strauss, senior currency strategist RBC Capital Markets.
"It just seems the market is looking and reacting to positive data and at the moment events or data that contradict that are simply ignored or only have a minimal impact."
Sentiment was upbeat overnight as global equities rallied as investors bet on a stabilization of the world economy and took heart from some upbeat corporate earnings.
Domestic bond prices were lower across the curve alongside the bigger U.S. Treasury market, adding to the skid during the previous session when the U.S. Federal Reserve said the pace of economic deterioration in the United States appeared to be slowing. [ID:nN29410693] (Editing by Theodore d'Afflisio)