Loading...

Home pages - full list (A-Z)

Canadian Dollar the Star After Canada Adds 94k Jobs; Expect Bitcoin at $1,500

The Canadian dollar made widespread gains on Friday after Canada announced its largest increase in employment in 6 years. Meanwhile, the Australian dollar fell for a fifth day and cryptocurrencies continue downwards. In the absence of more robust earnings growth, traders shouldn’t expect much from the US dollar, CIBC has said.

#News #AUD #BTC #CAD #USD
Email share     Facebook     LinkedIn    Twitter
canadian-flag-Canadian-dollar-news-best-exchange-rates

The Canadian dollar was by far the best performer and rallied strongly on Friday after Statistics Canada announced jobs growth for November of 94,000—the largest monthly increase since 2012. That was enough to have Canada’s unemployment rate fall to a record low of 5.6 percent and the Canadian dollar made handsome gains as a result.

USD/CAD fell (the Canadian dollar strengthened) in the hours following the release of StatCan data to C$1.325, from C$1.34. The pair’s losses were compounded by a softer US jobs report, released at the same time as its Canadian equivalent. While the number of new jobs in the US was reasonable, at 155,000, this, as well as average earnings growth (+0.2 percent), fell short of economists’ expectations.

Friday’s numbers keep the Bank of Canada well on course to raise interest rates in January and further ripen the Canadian dollar’s short and medium-term outlooks.

A number of analysts expect the Canadian dollar to rebound next year. On Thursday, it struck an 18-month low of C$1.3445.

On the US dollar, which had a mixed day, investors should favour a “softer view for the time being,” Bipan Rai, CIBC’s head of North American FX, told media outlets.

There was certainly nothing mixed about the Australian dollar, which is making headlines for the wrong reasons. Traders looking at AUD/USD daily charts will now see five red candles in a row thanks to this week’s surprisingly soft GDP numbers and a marked reduction in risk appetite amid a sell-off in global equity markets.

AUD/USD had started the week at 4-month highs near $0.74 but traded as low as $0.7198 on Friday before strengthening towards the day’s end to levels a shade above $0.72.

To nobody’s surprise, cryptocurrency valuations continue to slide.

On Friday, bitcoin touched $3,277 on the Bitfinex exchange, 84 percent lower than last December’s peak of $19,891.

Although bitcoin grabs most of the headlines, it isn’t among the worst performing digital currencies. Consider the likes of ethereum, which sank to a miserable $83—a year ago it traded 17 times higher at $1,424.

“There’s little to prevent bitcoin prices from reaching the continuous mean of $1,500,” Bloomberg’s Mike McGlone said midweek.

 

Further Reading

 

Disruptors Challenging Australian Banks in Forex Price and Service: ACCC Report

Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.

Last update: 1 Oct, 2019

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!