- Loonie outperforms among commodity currencies on Tuesday.
- USD/CAD trims losses but remains in negative territory, looking at weekly lows.
The USD/CAD rebounded from 1.3269 to 1.3320 during the American session amid a recovery of the US dollar across the board. The positive momentum for the greenback eased and the pair dropped back under 1.3300.
As of writing, USD/CAD trades at 1.3295, down almost 50 pips for the day. The loonie is being supported by risk appetite and a weaker greenback. In Wall Street, the Dow Jones gains 1.15% and the S&P 500 0.38%, the Nasdaq however, drops 0.40%.
US PPI above expectations, Home prices rise in Canada
Data released on Tuesday was mostly ignored by market participants. In the US, the Producer Price Index rose above expectations, with the annual rate rebounding from -0.8% to -0.4%.
In Canada, Housing Starts rose in July above expectations to an annual rate of 245K from 211K in June. “The 6-month average of housing starts grew again but remained well-below the 6-month average building permits. That’s suggesting stronger new building activity in the near-future, though not necessarily at July’s elevated level”, explained Claire Fan, economist at RBC.