USD/CAD Hits 3-Year High
The Canadian dollar tumbled Tuesday on soft economic data and a technical breakout. It was the worst performer while USD and GBP led the way. Up later, it's the Australian job vacancies report.
A hat trick of negative news swamped CAD.
- The trade deficit at $0.9B in Nov was worse than the $0.1B expected and the prior number was revised $1B lower.
- The Ivey PMI fell to the lowest since 2009 at 46.3 vs 54.5 exp
- BOC Governor Poloz said his biggest worry is under-performing inflation
Elsewhere in the market, the US dollar outperformed on trade balance numbers as the deficit hit $34.3B compared to $40B expected. Numerous economists boosted Q4 growth estimates after the report, some by more than 0.5 percentage points. The initial market reaction was subdued but as the day continued, gains mounted.
Early in Asia-Pacific trading, the AiG performance of construction index tumbled to 50.8 from 55.2. The big drop isn't a major surprise after the survey jumped to 55 from 35 in the middle of 2013. At 0030 GMT, Australia releases the job vacancies report for November. It's rarely a market mover but with AUD/USD teetering on Tuesday, it could tip it over. The prior reading was +3.1% m/m.
|46.3||55.0||53.7||Jan 07 15:00|
|-34.25B||-40.00B||-39.33B||Jan 07 13:30|
|-0.94B||-0.15B||-0.91B||Jan 07 13:30|
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