On Tuesday, the Canadian dollar had another rough day, giving up more than 0.15% against the U.S. dollar. The Australian dollar, which is often correlated with the loonie, also lost ground against the greenback, as the Reserve Bank of Australia opted to keep its key rate unchanged as expected.
Yesterday’s Canadian Trade Balance data for February proved a disappointment, showing an unexpected contraction in exports. The increase in equipment imports in February confirms that companies are increasing their investments.
This morning, we’ll be checking the pulse of the U.S. job market with the ADP Employment Survey. We expect a slowdown in job creation after results came in well above expectations in February. The minutes of the most recent U.S. Federal Reserve meeting will be released at 2 p.m. and pored over by market observers. Markets will no doubt be jittery in the next few hours as we await the first summit between Donald Trump and Xi Jinping scheduled to be held Thursday in the United States.
