Canadian Dollar Advances Amid Rising Risk Appetite

The Canadian dollar climbed against its major counterparts in pre-European deals on Friday amid rising risk appetite, after media reports suggested that the U.S. Treasury Department would not call China a currency manipulator in an upcoming report.

Sentiment was also bolstered after data showed China’s exports have so far held up well despite escalating trade tensions with the U.S.

China’s exports logged a double-digit growth in September, figures from customs administration revealed.

Exports grew 14.5 percent year-on-year in September, faster than the 9.8 percent increase seen in August. Imports advanced an annual 14.3 percent, resulting in higher trade surplus of around $32 billion in September.

Oil prices rebounded, reversing from a steep fall seen in previous two days, after strong Chinese data.

Crude for November delivery rose $0.83 to $71.80 per barrel.

The loonie climbed to a 2-day high of 1.3008 against the greenback, from a low of 1.3041 hit at 10:00 pm ET. The next possible resistance for the loonie is seen around the 1.28 region.

Reversing from an early low of 85.96 against the yen, the loonie appreciated to a 2-day high of 86.45. If the loonie rises further, it may find resistance around the 88.00 region.

The loonie edged up to 1.5079 against the euro and 0.9256 against the aussie, from its early low of 1.5130 and an 11-day low of 0.9290, respectively. The loonie is seen finding resistance around 1.49 against the euro and 0.91 against the aussie.

Looking ahead, Eurozone industrial production for August is due in the European session.

In the New York session, U.S. import and export price indices for September and University of Michigan’s preliminary consumer sentiment index for October are set for release.

The material has been provided by InstaForex Company – www.instaforex.com

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