By: DailyForex.com
The ongoing fall in oil prices as well as the stock market decline in emerging markets helped to extend the losing streak for commodity-linked currencies. That came on the heels of disappointing news from China’s Bureau of Statistics which reported that exports fell to -6.8% in November, well off experts’ forecast of -5.0%. Given that China is the second largest economy in the world, it appears that the government’s fiscal and monetary policy efforts continue to fail. China’s key trading partners, and especially those in Asia, are pressured by the softness in China’s economy.
As reported at 11:01 am (GMT) in London, the AUD/USD was trading at $0.7215, down 0.64%; in today’s trading session the pair ranged from $0.72 to $0.7272. The NZD/USD was also lower at $0.6626, down 0.26%, with a daily low of $0.6623 and a high of $0.6659. The USD/JPY was lower at 123.1710 Yen, down 0.14% in the session.
CAD Remains under Pressure
The USD/CAD was also feeling the pressure on the Canadian Dollar side of the pair; the pair was recently trading higher at C$1.3539. The decline in oil prices has put substantial pressure on the Canadian Dollar as Canada is a major exporter of oil. Recently, the Bank of Canada announced no changes to monetary policy. Recent soft data, including disappointing trade numbers and employment figures, suggest a struggling economy. Later today, the Governor of the Bank of Canada will be speaking and could hint at the outlook for BOC’s monetary policy. Many analysts foresee greater divergence between BOC policy and the US Federal Reserve which appears on the verge of a tightening cycle.