USDCAD pairing catches his breath
Crude oil has nudged upward this morning after losing close to 7% of its value in two days. The difficulties experienced by Chinese officials in reining in the slowdown in the world’s second largest economy are becoming more and more evident from one week to the next, which definitely does not bode well for commodity prices despite the rally this morning.
Indicators south of the border yesterday were mixed. Growth in Personal Income for June beat expectations, at +0.4% vs. +0.3%, while Personal Spending rose by +0.2% as expected. Construction Spending failed to keep pace with forecasts, however, rising only +0.1% vs. the anticipated +0.6%. On the whole, the USD/CAD pairing moved little yesterday compared to recent weeks, and the same situation should continue today.
Overnight, the Reserve Bank of Australia opted to keep its key rate unchanged and toned down its former comments that the Australian dollar was too strong, leading the AUD to surge close to +1.5% against the major currencies.
Today, our attention will be focused on U.S. Factory Orders for June.