Canadian dollar – Crude oil is only marginally in the black on Thursday, yet this follows a couple of days of stronger rebounds that have lifted the price of a barrel of crude to $101.50 heading in to the start of U.S. driving season this weekend. However, the better tone to risk-taking met with a dip in the fortunes of the U.S. labor market and failed to encouraging dealers to put back growth-sensitive plays into their portfolios. The Canadian dollar weakened as a result and today buys $1.0205 U.S. cents.
Aussie dollar – The Aussie moved in the opposite direction partly due to rebounding Asian stocks but moreover on account of a greater than hoped for increase in capital expenditure during the first quarter, where investment projects accelerated by a 3.4% clip. The Aussie was dragged higher by rising commodity prices after a 1.6% gain for the CRB index midweek, while building on that theme, RBA Deputy Governor Ric Battellino noted that the health of the Aussie was a reflection of “strong global growth” as demand for Australian natural resources remained firm. The Aussie is close to its session high and recently traded at $1.0600 U.S. cents.
Japanese yen –Shortly after the dull U.S. GDP and initial claims data the yen surged versus the dollar reversing weakness earlier in the session from ¥82.02 to ¥81.15. Selling pressure mounted after the dollar broke through the daily low but escalated to drive the pair through even Monday’s low for dollar/yen.
Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC
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