The Canadian dollar fell against the majority of its most-traded peers before a report forecast to show job creation slowed even as strong trade data from China buoyed the currencies of other commodity exporters.
The Canadian currency traded in its tightest range this year versus the greenback. The economy probably created 5,000 jobs in January, down from a revised 31,200 the month before, according to a Bloomberg survey of 23 economists. The currency fell against the Australian and New Zealand dollars, fellow so-called commodity currencies, after China’s government said exports gained 25 percent from a year earlier and imports rose 28.8 percent. Crude oil, Canada’s largest export, rose.
“We saw some good data coming out of China, certainly that boosted risk appetite,” said Sebastien Galy a senior foreign-exchange strategist at Societe Generale SA in New York, in a telephone interview. “The problem for the Canadian dollar is expectations are somewhat subdued, people focus a lot on the bad fundamentals in Canada, mainly the high levels of consumer debt. That’s an old story that’s come to the fore. The Canadian dollar has difficulty outperforming when it should outperform.”
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, was little changed against its U.S. counterpart at 99.88 cents per U.S. dollar at 7:58 a.m. in Toronto. One loonie buys $1.0012.
Canadian household debt rose to 165 percent of disposable income in the third quarter, compared with 163 percent in the prior three-month period.