BoC releases business outlook survey - CAD falls
We have seen a sharp fall in the CAD in the last few minutes and this comes in response to the BoC business outlook in Canada. The survey has seen in its index fall from 2.2 to -0.6, sending the USD/CAD rate back into the upper 1.3300's after testing the lower figure level once again.
The survey reveals that demand both domestically and from abroad has moderated, though investment and hiring plans remain positive. Other key points include heightened tensions between Canada and China and other trade issues are hurting sales and are promoting growing uncertainty. Moderation of US growth is an added concern given the US is its major trading partner.
USD/CAD is not looking to challenge the 1.3400 level again, though we need to see a sustained move above this level to break out of what looks like a narrowing range since the start of March.
Stock markets are taking a little dip also, and this is also pressuring the CAD, with the AUD and NZD moving lower in a more modest way.