The Canadian dollar fell against a majority of its most-traded peers on concern slowing Chinese growth will hurt demand for commodities such as oil and gold.
The loonie, as the currency is known for the image of the aquatic bird on the C$1 coin, fell after China car sales unexpectedly shrank for the first time in eight months while Alcoa Inc. (AA) said the nation’s slowing growth will cut global demand for aluminum. Raw materials account for about half of Canada’s export revenue.
“This is the market jittery ahead of earnings season,” Greg Anderson, the North American head of Group-of-10 currency strategy at Citigroup Inc. in New York, said in a telephone interview. “We’re likely to see that choppiness continue. We still think the Canadian dollar is a safer trade relative to” other commodity-driven currencies including the Australian and New Zealand dollars.
Canada’s currency was little changed at 97.81 cents per U.S. dollar at 9:33 a.m. in Toronto. One Canadian dollar buys $1.02239.
The Bank of Canada will auction C$2.7 billion ($2.8 billion) in three-year notes today. The last sale of this note maturity on Aug. 29 was C$2.9 billion and yielded 1.278 percent with a bid-to-cover ratio of 2.73, measuring the level of bids versus the amount of debt for sale.
Source: Bloomberg
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