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USD/CAD rebounds after Canadian election results
Markets across Asia Pacific went in different directions on Tuesday, with the lacklustre GDP data from China on Monday weighing on mining stocks but little else offering direction. The Shanghai Composite was flat and the Shenzhen Composite was up 0.9 per cent. Hong Kong’s Hang Seng was down 0.5 per cent and Australia’s S&P/ASX 200 was down 0.5 per cent. Japan’s Nikkei 225 was up 0.3 per cent.
The lack of direction is set to carry over into Europe.
The yen was flat at 119.451 against the US dollar and the Aussie dollar was up 0.1 per cent 0.7256 against the greenback.
The euro traded between $1.1325-39, attempting to make tracks away from a $1.1306 low hit on Monday.
The Canadian dollar was in focus as the Canadian Federal election results led it to fall 0.2 percent to C$1.3040 per U.S. dollar at 6:56 a.m. in London.
According to Elections Canada, the Liberals are projected to win 186 seats, easily securing the 170 needed for majority government. The victory will mark a stunning turnround from 2011, when the Liberals won just 34 seats to the Tories’ 166 and the NDP’s 103.
The Canadian dollar has dropped 1.3 percent since October 15, heading for its steepest such drop since the period ended Aug. 25. One loonie buys 77 U.S. cents.
The collapse in the price of crude oil, one of Canada’s largest exports, tipped the country into a so-called technical recession in the first half of this year, forcing its central bank to twice cut interest rates to stimulate the economy. The loonie fell to its lowest in more than a decade, while bond yields dropped to a record.
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